Three bedroom home nestled in a wooden area on 1.37 acres. The expansive grounds and back porch are perfect for outdoor enjoyment, and the widow?s walk offers peeks of the Harbor. The current home, prime for carefree summer living, has the classic charm of Old Nantucket. There also exists the potential to build with alreadyContinue Reading
Listed in March for $750,000 11 Gray Avenue quickly got an accepted offer and sold over asking price for $802,560. Investment opportunity or fix up and enjoy this 3 bedroom home on 1.4 wooded acres. Potential subdivision into multiple lots may be possible.
Listed in October for $3,695,000 123 Cliff Road got an accepted offer in April, went under agreement in May and sold yesterday for $3,217,000. Classic Nantucket home located in desirable Cliff area with water views, deeded beach access and close proximity to the Westmoor Club. Five bedrooms, four baths with a garage set on overContinue Reading
Listed for $2,495,000 in September 216 Cliff Road sold for $2,250,000 yesterday. Four bedroom, 3.5 bath Cliff Road home with extensive landscaping, stonework and decks, including a private, recessed deck at the roof peak.
Listed in october for $1,245,000 36 Goldfinch Drive had one price reduction to $999,000, went under agreement in April and sold yesterday for $910,000. Spacious five bedroom home is in one of Naushop’s best locations. With three floors of living space, two family rooms, a covered porch, patio, and private yard, it nicely accommodates largeContinue Reading
@INHERIT
We are one quarter of the way through the year and Nantucket
real estate sales activity has been holding firm, although, the total dollar
volume is down from 2010 at this juncture. We have had 58 real estate transactions vs. 56 through March
2010, but dollar volume is off 30%, from $101 million last year to $71 million
as of March 31 this year. Great Point Properties cannot make anything of
significance from this, other than house and land sales this year are occurring
at the lower end of the market. Additionally,
there was a closing in February 2010 for $19.2 million, further skewing the
dollar totals.
Great Point Properties sees the key for the moment is transaction volume. Demand is remaining steady with 2010 numbers and that is a good sign for sellers. As Nantucket’s summer season approaches, we assume real estate sales will move into the higher price points. As Great Point Properties reported in our Annual Report, we expect 2011 to match 2010 for sales activity. Three months in , we still think that will occur.
WHY BUY THIS SUMMER?
An important point that Nantucket real estate buyers should remember is that mortgage rates are still very low. As inflation has started to rear its ugly head, these rates will not remain at these levels for long. Banks are lending between 5% and 5.5% fixed, for 30 year terms. As inflation kicks in, real assets will increase in value, but debt values will decline in real dollar terms. The chart to the left shows the inverse impact on assets and debt in an environment of 5% inflation. It assumes a property was purchased for $2,000,000 , $1,600,000 of which was borrowed. Ten years of 5% inflation produce these results displayed in the graph (left).
Owning real estate is an excellent investment to hedge against inflation. Today many assets classes, especially gold, have seen significant price increases. In contrast, the Nantucket real estate is still working its way out of the 2008/2009 morass, and as a result the island’s house and land prices have not made any moves to the up side. Great Point Properties firmly believes this real estate market has some excellent buying opportunites, especially when coupled with the still historically low interest rates. So give Great Point Properties a call.
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