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Posted: December 11, 2013

The chatter this week in the Nantucket real estate community is the sale of 48 Monomoy Road. The $18,000,000 sale for this stunning one of a kind harbor front property was a steep discount off the $22,995,000 asking price but most would agree that the transaction still represents a high water mark given the site constraints on this one acre parcel.

The other recent notable sale in late November was the sale of a Great Point Properties listing at 37 Hulbert Avenue. This classic summer "cottage" is located on a prized over-sized lot, of nearly .65 acre, on the harbor in the heart of Brant Point. The property traded for $16,500,000, which was just shy of the $16,995,000 asking price.

A third notable sale that transacted in October was the sale of 68 Pocomo Road for $11,200,000. Though the property is not a waterfront site, the views are stunning and the deeded harbor access provides a virtual waterfront experience.

While these large transactions continue to fuel real estate conversations, the more interesting story is the declining land inventory. 2013 was a banner year for land sales. There have been 87 sales year-to-date and there are an additional 14 pending sales. The remaining land inventory consists of 67 parcels. The average price of these lots is $1,678,000. When looking closer at parcels of one acre or more the inventory shrinks to 25 available lots and the average price in this category shoots up to $3,025,000.

While erosion bites away at certain coastlines, conservation organizations such as the Nantucket Conservation Foundation and the Nantucket Land Bank continue to successfully acquire open lands and regulatory boards make land development more speculative the flow of new developments is coming to an end. And while individual parcels and small developments will continue to come on the market for years to come, it is certain that one year from now the availability will be scarcer than today. In a year from now, if there are 35 available parcels of land for sale you can be sure the prices will be higher.

GPP