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HomeMy WebLinkAboutAppendix La - Nantucket Real Estate Market Insights by Fisher Real Estate(508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS ALL PROPERTY TYPES FY 2020 FY 2019 % CHANGE YOY 5-YEAR AVG. Transactions 445 334 33% d 379 Dollar Volume ($in 000s)$1,340,126 $651,757 106% d $927,560 Avg. Months on Market 6.6 5.7 16% d 6.6 Sale Price to Last Ask Price 94%94%0 94% Active Listings (Oct)281 436 -36% f 377 Months Supply of Inventory 6.3 12.6 -50% f 11.0 New Contracts (Oct)112 56 100% d 62 $20,000,000 45 CLIFF ROAD MARKETED FOR [41 Days] $3,550,000 31 WESTERN AVENUE MARKETED FOR [47 Days] $11,000,000 44 BREWSTER & 4-6 HARBORVIEW [Private Sale] 1 OCT 20Market Insights BY JEN ALLEN NANTUCKET REAL ESTATE KEY MARKET STATISTICS MONTHLY SALES HIGHLIGHTS HIGHEST RESIDENTIAL SALE HIGHEST COMMERCIAL SALE FISHER’S REVIEW If you thought Nantucket real estate sales couldn’t get any hotter than last month’s record volume, take a look at October sales. October represented the fourth consecutive month of historic sales volume for the island market, with 108 transactions totaling a whopping $361 million. This represented a respective 104 percent and 162 percent increase from the same period one year ago and the highest dollar volume on record. Cumulatively, for the 10 months ending October 31, 2020, there were 445 property transfers totaling $1.34 billion. This brought the year-over-year increase to 33 percent on a transaction basis and 70 percent on a dollar volume basis. Single-family homes sales hit record numbers with rapid marketing times and minimal discounts. This kept inventory at record lows while contract activity showed just a slight shift in downward momentum. Here are Fisher’s October Market Insights... ©2020 FISHER REAL ESTATENANTUCKET REAL ESTATE ACTIVITY THROUGH OCT 2011–20 Dollar VolumeDollar Volume per Quarter # of TransactionsQ4YTD # of TransactionsQ3Q2Q1 HIGHEST LAND SALE RESIDENTIAL SALES ANALYSIS RECORD VOLUME, RAPID ABSORPTION & VIBRANT HIGH-END (508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS©2020 FISHER REAL ESTATE22 CONTRACT ACTIVITY NEW PURCHASE ACTIVITY HELD STRONG • Although contract activity moderated in October relative to August and September, total new purchase activity remained at historic levels. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2020, totaled 111 properties, down from the 121 reported in August but exactly double the activity witnessed one year ago. It was also significantly higher than any October over the past five years. • Most of the contracts booked in October, 35 percent, were for properties last priced between $1 million and $2 million, slightly lower than the 39 percent for this segment in 2019. New contracts for properties listed between $3 million to $5 million also increased, while sales above $5 million continued to show solid activity as we approach year’s end. • In reviewing preliminary November data and seeing what is in the pipeline, the Nantucket market may well surpass $1.5 billion for full-year volume. • Single-family home sales (excluding condos, co-ops & covenant properties) during the month of October measured 85 transactions totaling $310 million. This is effectively double the transaction and dollar volume witnessed in both October 2019 and the five-year October average. Monthly dollar volume also slightly exceeded September 2020 levels, which previously set the record for the highest monthly dollar volume. The transactions brought the cumulative year-to-date total to 345 single-family home sales totaling $1.18 billion through October 31, 2020, a respective 46 percent and 92 percent increase from one year ago. • October property sales were notable not only for the extraordinary increase in high-end transactions (see next section) but also for the rapid sales timeline. On average, properties that sold in October were marketed for 144 days, nearly two months faster than the year-to-date average. That figure is a bit misleading as it was affected by several outlier properties that were marketed for more than one year. The other 62 percent of October transactions took place within 90 days, illustrating just how “hot” the Nantucket market was this summer when these properties went under contract. • Similar to the average marketing time, the average home sale price statistics don’t reveal the full story as several outlier sales drew the average down. Wherein the Nantucket market historically saw just a handful of properties trade at full asking price on an annual basis, October 2020 sales included 11 properties that sold for full asking price or higher. 2020 2019 % Change 5-Year Avg(2016-20) Total Transactions 345 237 46% d 276 Total Sales Dollar Volume $1,182,201,037 $614,681,716 92% d $782,295,562 Avg. Selling Price $3,426,670 $2,593,594 32% d $2,791,351 Median Selling Price $2,575,000 $1,900,000 36% d $1,974,500 Avg. Months on Market 7.0 5.9 20% d 6.7 Avg. Price as % of Last Ask 94%94%0 94% Avg. Price as % of Original Ask 89%90%–1 f 90% Avg. Price as % of Assessed Value 131%130%1 d 129% HIGH-END RESIDENTIAL SALES ANALYSIS SALES SOAR IN $5M+ PRICE POINTS • With year-over-year transaction volume rising 33 percent and dollar volume vastly outpacing that increase by an additional 37 percent, there is only one thing that explains the gap – the high-end market. October sales illustrate a fiery high-end segment with 20 percent of all monthly transactions selling for $5 million or more. Those sales contributed $175 million, more than half of the total monthly dollar volume. The ultra-high-end, or sales above $10 million, were particularly active with five transactions taking place during the month. This compares to zero transactions in October 2019 and just four ultra-high-end sales during all of 2019. • These monthly sales add to what has been a remarkable year for high-end activity. As of October 31, 2020, there were 55 property transactions between $5 million and $10 million, more than double the activity witnessed just one year ago. For the ultra-high-end segment, there have been 10 transactions compared to just two in 2019. • These transactions aided in lowering high-end inventory to levels not seen in several years. In fact, since 2015, the number of ultra-high-end properties listed for sale ranged anywhere from 20 to 35 properties in October. As of October 31, 2020, there were just 13 properties remaining for sale. It’s a similar story for most of the million-dollar pricing segments between $5 million and $10 million. All but the $5 million to $6 million segment saw dramatically lower inventory levels as compared to one year ago. • Total inventory figures remained at historic lows and measured the lowest level in at least five years. As of October 31, 2020, there were 285 properties listed for sale including residential, commercial and vacant land listings. This represented a decline of 35 percent from one year ago. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured 4 months for residential properties, six months for vacant land and 21 months for commercial properties. • Every price point with the exception of sub-$1 million properties had markedly less inventory than one year ago (and the only reason the sub-$1 million segment isn’t relatively lower is that there are only 11 properties listed). The $1 million to $2 million segment saw the largest year-over-year declines while the $4 million to $5 million price point was also considerably lower. For the first time in a few years and for reasons mentioned above, ultra-high-end inventory above $10 million was also competitive. With vibrant transaction activity, many properties in this price point are trading more quickly, resulting in far less supply than historic norms. NANTUCKET PROPERTY INVENTORY INVENTORY AT HISTORIC LOWS MARKET INDICATORS SINGLE-FAMILY DATA REVIEW Market Insights BY JEN SHALLEY DEC 16NANTUCKET REAL ESTATE Market Insights BY JEN ALLEN OCT 20NANTUCKET REAL ESTATE August September October $5M–$10M >$10M Transactions Total Sales Volume Transactions Total Sales Volume 2011 7 $41,020,000 1 $11,800,000 2012 14 $98,300,000 2 $29,800,000 2013 8 $58,766,300 6 $80,029,000 2014 16 $98,887,500 6 $81,637,500 2015 11 $73,648,875 6 $82,000,000 2016 18 $123,185,502 7 $90,525,000 2017 24 $164,202,750 8 $101,290,000 2018 29 $186,472,000 8 $107,640,000 2019 24 $160,585,000 2 $30,670,000 2020 55 $351,427,000 10 $175,373,000 # of Contracts (508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 3 Market Insights BY JEN ALLEN OCT 20NANTUCKET REAL ESTATE RESIDENTIAL SALES ANALYSIS RECORD VOLUME, RAPID ABSORPTION & VIBRANT HIGH-END • Single-family home sales (excluding condos, co-ops & covenant properties) during the month of October measured 85 transactions totaling $310 million. This is effectively double the transaction and dollar volume witnessed in both October 2019 and the five-year October average. Monthly dollar volume also slightly exceeded September 2020 levels, which previously set the record for the highest monthly dollar volume. The transactions brought the cumulative year-to-date total to 345 single-family home sales totaling $1.18 billion through October 31, 2020, a respective 46 percent and 92 percent increase from one year ago. • October property sales were notable not only for the extraordinary increase in high-end transactions (see next section) but also for the rapid sales timeline. On average, properties that sold in October were marketed for 144 days, nearly two months faster than the year-to-date average. That figure is a bit misleading as it was affected by several outlier properties that were marketed for more than one year. The other 62 percent of October transactions took place within 90 days, illustrating just how “hot” the Nantucket market was this summer when these properties went under contract. • Similar to the average marketing time, the average home sale price statistics don’t reveal the full story as several outlier sales drew the average down. Wherein the Nantucket market historically saw just a handful of properties trade at full asking price on an annual basis, October 2020 sales included 11 properties that sold for full asking price or higher. 2020 2019 % Change 5-Year Avg(2016–20) Total Transactions 345 237 46% d 276 Total Sales Dollar Volume $1,182,201,037 $614,681,716 92% d $782,295,562 Avg. Selling Price $3,426,670 $2,593,594 32% d $2,791,351 Median Selling Price $2,575,000 $1,900,000 36% d $1,974,500 Avg. Months on Market 7.0 5.9 20% d 6.7 Avg. Price as % of Last Ask 94%94%0 94% Avg. Price as % of Original Ask 89%90%–1 f 90% Avg. Price as % of Assessed Value 131%130%1 d 129% (508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 4 Market Insights BY JEN ALLEN OCT 20NANTUCKET REAL ESTATE HIGH-END RESIDENTIAL SALES ANALYSIS SALES SOAR IN $5M+ PRICE POINTS • With year-over-year transaction volume rising 33 percent and dollar volume vastly outpacing that increase by an additional 37 percent, there is only one thing that explains the gap – the high-end market. October sales illustrate a fiery high-end segment with 20 percent of all monthly transactions selling for $5 million or more. Those sales contributed $175 million, more than half of the total monthly dollar volume. The ultra-high-end, or sales above $10 million, were particularly active with five transactions taking place during the month. This compares to zero transactions in October 2019 and just four ultra-high-end sales during all of 2019. • These monthly sales add to what has been a remarkable year for high-end activity. As of October 31, 2020, there were 55 property transactions between $5 million and $10 million, more than double the activity witnessed just one year ago. For the ultra-high-end segment, there have been 10 transactions compared to just two in 2019. • These transactions aided in lowering high-end inventory to levels not seen in several years. In fact, since 2015, the number of ultra-high-end properties listed for sale ranged anywhere from 20 to 35 properties in October. As of October 31, 2020, there were just 13 properties remaining for sale. It’s a similar story for most of the million-dollar pricing segments between $5 million and $10 million. All but the $5 million to $6 million segment saw dramatically lower inventory levels as compared to one year ago. $5M–$10M >$10M Transactions Total Sales Volume Transactions Total Sales Volume 2011 7 $41,020,000 1 $11,800,000 2012 14 $98,300,000 2 $29,800,000 2013 8 $58,766,300 6 $80,029,000 2014 16 $98,887,500 6 $81,637,500 2015 11 $73,648,875 6 $82,000,000 2016 18 $123,185,502 7 $90,525,000 2017 24 $164,202,750 8 $101,290,000 2018 29 $186,472,000 8 $107,640,000 2019 24 $160,585,000 2 $30,670,000 2020 55 $351,427,000 10 $175,373,000 (508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 5 Market Insights BY JEN ALLEN OCT 20NANTUCKET REAL ESTATE • Total inventory figures remained at historic lows and measured the lowest level in at least five years. As of October 31, 2020, there were 285 properties listed for sale including residential, commercial and vacant land listings. This represented a decline of 35 percent from one year ago. The total months’ supply, or how long it would take to sell all listings based on trailing 12-month sales, measured 4 months for residential properties, six months for vacant land and 21 months for commercial properties. • Every price point with the exception of sub-$1 million properties had markedly less inventory than one year ago. (And the only reason the sub-$1 million segment isn’t relatively lower is that that are only 11 properties listed). The $1 million to $2 million segment saw the largest year- over-year declines while the $4 million to $5 million price point was also considerably lower. And, for the first time in a few years and for reasons mentioned above, ultra-high-end inventory above $10 million was also competitive. With vibrant transaction activity, many properties in this price point are trading more quickly, resulting in far less supply than historic norms. NANTUCKET PROPERTY INVENTORY INVENTORY AT HISTORIC LOWS (508) 228–4407 21 MAIN STREET, NANTUCKET, MASSACHUSETTS 6 Market Insights BY JEN ALLEN OCT 20NANTUCKET REAL ESTATE CONTRACT ACTIVITY NEW PURCHASE ACTIVITY HELD STRONG • Although contract activity moderated in October relative to August and September, total new purchase activity remained at historic levels. Recorded contracts (Offers to Purchase and Purchase & Sale Contracts excluding duplicates) for the monthly period ending October 31, 2020, totaled 111 properties, down from the 121 reported in August but exactly double the activity witnessed one year ago. It was also significantly higher than any October over the past five years. • Most of the contracts booked in October, 35 percent, were for properties last priced between $1 million and $2 million, slightly lower than the 39 percent for this segment in 2019. New contracts for properties listed between $3 million to $5 million also increased, while sales above $5 million continued to show solid activity as we approach year’s end. • In reviewing preliminary November data and seeing what is in the pipeline, the Nantucket market may well surpass $1.5 billion for full-year volume. # of ContractsAugust September October