Market Analysis: A Snapshot of Nantucket Real Estate

Caption: 2023 Market Snapshot 2023 proved to be an interesting year for Nantucket real estate. Despite the challenges posed by decreased inventory, rising mortgage rates, and global uncertainty, the billion-dollar mark for real estate sales...

2023 Market Snapshot Caption: 2023 Market Snapshot

2023 proved to be an interesting year for Nantucket real estate. Despite the challenges posed by decreased inventory, rising mortgage rates, and global uncertainty, the billion-dollar mark for real estate sales was surpassed once again. Record-breaking home sales and higher average prices were observed, with most homes sold being priced above $3 million. The average home sale now exceeds $4 million. Inventory remains historically low, particularly for entry-level supply, driving up prices and making it an advantageous time for sellers. With mortgage rates stabilizing, more buyers will likely enter the housing market. While sales may have slowed, Nantucket's market remains competitive and resilient.

What this means for sellers:

Now is the time to cash in on the equity you've gained through aggressive value growth. If you think you might be ready to sell your home, contact us for a free in-depth property evaluation.

What this means for buyers:

Competition is strong due to low inventory. It's crucial to get pre-approved and come in strong. If you're interested in buying, contact us to speak with one of our experienced agents regarding a Nantucket purchase.

Five Year appreciation rate graph Caption: Five Year appreciation rate graph

Nantucket Inventory chart Caption: Nantucket Inventory chart

Price point comparison chart Caption: Price point comparison chart

Q3 Market Snapshot

I look at the Covid years of the real estate market like a Piranhas feeding frenzy. It was wild and aggressive. It seemed like every property that hit the market was under agreement the same day. Not only were the properties under agreement instantaneously, but they were often sold at full list price, and frequently above. Things have calmed down since the Covid years, but don’t let the downward lines on the statistical charts fool you. There have still been some major sales and the market is still very robust. One of the most important statistics is the appreciation rate, and that data point is trending upwards, and continues to do so consistently over the years. Your Nantucket property remains an exceptional investment.

One of my takeaways from the market statistics is that 2023’s third quarter broke the record with a new average selling price of $5.2 million dollars. That is up 11% from 2022. Adding to that staggering statistic is the fact that 2022’s average residential sale ($4.14 million) was up 21% from 2021. The entry level to the Nantucket market has increased significantly. And while this isn’t new information…the number of homes listed and sold for under a million is basically nonexistent. Just 2 years ago in 2021 there were 26 sales under one million in the first three quarters of the year, followed by 12 sales in the same time frame last year. In the first three quarters of 2023, there were a lowly six sales in that price point. On the flip side of that, Nantucket saw the largest-ever recorded residential sale in the 3rd quarter. This mega-sale and other notable transfers below.

Notable 3rd quarter sales:

  • 68 & 72 Monomoy Road was sold this September for $42,000,000. This is the highest recorded residential sale on Nantucket.
  • 10 Pippens Way was sold this September for $7,800,000. This home was last sold in August of 2020 (just when the feeding frenzy was beginning to ramp up) for $5,550,000, and previously before that in 2016 at a new construction price of $4,800,000.
  • 42.5 Union Street sold in the 3rd quarter for $3,725,000. It was purchased in May of 2020 for $2,400,000.
  • 9 Nobadeer Way sold for $1,600,000 in July of this year. It was purchased in 2016 for $600,000, showing an appreciation of 160% in under ten years with very few improvements to the property. This also testifies to the fact that the entry level to the Nantucket real estate market has increased significantly in that same period.

At the time of writing, the Town of Nantucket is sweeping up the Halloween candy wrappers and gearing up for a highly contentious debate on short-term rentals at this year’s Special Town Meeting. We will keep homeowners and renters apprised of the outcome as soon as one has been reached. In the meantime, we are booking 2024 summer rentals now. Homeowners, please get us your most recent availability, rates, and/or pictures if you have not already done so. The vacation booking frenzy begins right around the Christmas Holidays, and now is a great time to speak to a Jordan agent about next summer.

Quarterly Comparison Property Type Caption: Quarterly Comparison Property Type

Ten Year Appreciation Rate Caption: Ten Year Appreciation Rate

3rd Quarter Inventory Caption: 3rd Quarter Inventory

Quarterly Comparison Total Dollar Volume Caption: Quarterly Comparison Total Dollar Volume

Quarterly Comparison Total number of Sales Caption: Quarterly Comparison Total number of Sales

Q3 Sales by Segment Caption: Q3 Sales by Segment

Dollar Volume Comparison Caption: Dollar Volume Comparison

q3 Inventory Activity Caption: Q3 Inventory Activity

Number of Sales vs. Inventory Caption: Number of Sales vs. Inventory

Number of Sales per Price Point Caption: Number of Sales per Price Point

Price Point Comparison Caption: Price Point Comparison

Percent of asking price Caption: Percent of asking price

2023 Q2 Market Report

It may seem like the real estate market has leveled, but in actuality, we are returning to a strong pre-Covid market. No real estate market, no matter how robust, could have sustained the pace of the Covid frenzy. The market on Nantucket was strong prior to the hysteria that Covid brought, and it remains solid now and in the foreseeable future. While it may not seem like the intensity is there, rest assured there have still been some major sales, and the market is still very robust.

One of the most important statistics is the appreciation rate, and that data point is trending upwards and continues to do so consistently over the years. One of my takeaways from the market statistics is that 2023's third quarter broke the record with a new average selling price of $5.2 million dollars. That is up 11% from 2022. Adding to that staggering statistic is the fact that 2022's average residential sale ($4.14 million) was up 21% from 2021. The entry level to the Nantucket market has increased significantly. And while this isn't new information, the number of homes listed and sold for under a million is basically nonexistent. Just 2 years ago in 2021, there were 26 sales under one million in the first three quarters of the year, followed by 12 sales in the same time frame last year. In the first three quarters of 2023, there were a lowly six sales in that price point. On the flip side of that, Nantucket saw the largest-ever recorded residential sale in the 3rd quarter.

Notable 3rd quarter sales:

  • 68 & 72 Monomoy Road was sold this September for $42,000,000. This is the highest recorded residential sale on Nantucket.
  • 10 Pippens Way was sold this September for $7,800,000. This home was last sold in August of 2020 (just when the feeding frenzy was beginning to ramp up) for $5,550,000, and previously before that in 2016 at a new construction price of $4,800,000.
  • 42.5 Union Street sold in the 3rd quarter for $3,725,000. It was purchased in May of 2020 for $2,400,000.
  • 9 Nobadeer Way sold for $1,600,000 in July of this year. It was purchased in 2016 for $600,000, showing an appreciation of 160% in under ten years with very few improvements to the property. This also testifies to the fact that the entry level to the Nantucket real estate market has increased significantly in that same period.

At the time of writing, the Town of Nantucket is sweeping up the Halloween candy wrappers and gearing up for a highly contentious debate on short-term rentals at this year's Special Town Meeting. We will keep homeowners and renters apprised of the outcome as soon as one has been reached. In the meantime, we are booking 2024 summer rentals now. Homeowners, please get us your most recent availability, rates, and/or pictures if you have not already done so. The vacation booking frenzy begins right around the Christmas Holidays, and now is a great time to speak to a Jordan agent about next summer.

Quarterly Comparison Property Type Caption: Quarterly Comparison Property Type

Ten Year Appreciation Rate Caption: Ten Year Appreciation Rate

3rd Quarter Inventory Caption: 3rd Quarter Inventory

Price Point Comparison Caption: Price Point Comparison

Q1 2022 Real Estate Market Review

Well… the groundhog did say six more weeks of winter… but we have only seen a handful of days above 50 degrees and summer sure is taking its sweet time to arrive. Hopefully, when the climate heats up so will the real estate market. Things have adjusted since the multi-year Covid-induced frenzy that was the Nantucket Real estate market. We are down almost 50% in sales compared to 2022's first quarter, but rest assured, the first quarter months on Nantucket are not the sole indicators of how the market will shape up for the year, and it is still a very good time to sell your home. Inventory, while definitely getting better, is still very low, which makes it a seller's market. Before the Covid boom, Nantucket homeowners were moving around in the market. Sellers were trading up or down based on their individual needs. Those moves are harder to come by post-Covid, and now sellers are holding on to their properties. After the first quarter was said and done, we have started to see some price adjustments. Some sellers had unrealistic expectations based on the real estate frenzy established by Covid and are now having to adjust their pricing. Inventory that is priced for today's market is moving quickly. We thought with interest rates rising that we would see properties listed under 2 million slowing down, but that has not been the case. There are so few properties listed under 2 million, and they are moving very quickly. What we have learned from the "new Nantucket buyer" is that the neighborhood or island community doesn't matter as long as they can build their dream home, perhaps with a pool. And those entering the Nantucket Market at under 2 million are confident that their investment is safe and will appreciate.

Notable Sales and points of interest:

  • 21 Berkeley Avenue in Monomoy sold on June 30 for $38,127,500. This property was originally listed at 56 million dollars last summer. This is the largest residential sale recorded on Nantucket. It would be interesting to hear the listing brokers' thoughts on the original list price and closing at 32% below ask. This specific sale will throw the statistics off a bit. This sale is an anomaly, and our market is small for the one-of-a-kind buyer.
  • 25 Nonantum Ave closed on May 31 for $26,875,000. This is the highest sale to date in the Surfside area.
  • 20 Cliff Road is another example of a spike in value. This property sold in June of 2021 for $4,100,000. It just sold again this May for $5,100,000 with no improvements. That's almost a 25% appreciation in just under two years.
  • 35 Shawkemo Road sold for $15,250,000. It is a stunning and secluded estate nestled within one of the most private and desirable areas on Nantucket Island.

Island-wide 5-year price index Caption: Island-wide 5-year price index

First quarter Inventory Activity Caption: First quarter Inventory Activity

Total Dollar Volume Quarterly Comparison Caption: Total Dollar Volume Quarterly Comparison

Total Number of Sales quarterly comparison Caption: Total Number of Sales quarterly comparison

Price Point Comparison Caption: Price Point Comparison

First quarter sales by segment Caption: First quarter sales by segment

Sales per price point Caption: Sales per price point

Sales Vs. Inventory Caption: Sales Vs. Inventory

2022 Year in Review

What goes up must come down - perhaps. After the upsurge of sales in 2020 and 2021 resulting from the pandemic, Nantucket real estate began to level off in 2022, displaying statistics more commensurate with the pre-pandemic market. 2022 exhibited a 29% decline in dollar volume and 41% fewer transactions compared to 2021. Despite the decline in dollar volume and the number of transactions, the average sale price was up from $2,832,000 in 2021 to $3,448,000 in 2022. The main contributing factor to continuing appreciation is the low supply of inventory and strong buyer demand. With a short supply of inventory in 2022, home sales dropped but increased appreciation culminated in a strong dollar volume, resulting from several high-end and ultra-high-end property sales. The lack of entry-level homes, properties under $1,000,000, is a significant change in the market, with serious consequences for Nantucket's workforce. Nantucket remains an incredibly beautiful, unique, and special island high in demand with limited real estate opportunities, keeping values high and investments secure.

Q3 Market Snapshot

It's fall on Nantucket, and you know what that means - cooler, crisp days and nights, scallop season, less traffic, colorful moors, a time for locals to kick back and recharge. The Nantucket real estate market is transitioning from the "Covid Boom" to a new normal. While not as explosive, the market still remains robust. Well-priced properties continue to move quickly, with some receiving multiple offers. However, properties not in tune with the current market pricing will need to readjust to capture a buyer. Higher-than-expected inflation and interest rate hikes are contributing factors to the uncertainty throughout the economy, impacting the market. Prices are beginning to stabilize but remain strong. Limited supply and high demand assist in maintaining value, making Nantucket a sound and secure investment due to its natural beauty, sophistication, safety, limited supply, and demand, attracting the ultra-wealthy.

Q2 2022 Real Estate Market Review

The real estate market seems to be returning to a pre-Covid state. While most of the country is experiencing a downturn, Nantucket seems to be plateauing. Some price adjustments have been seen, which is a new trend after the rapid growth of the past two years. The new Nantucket buyer is less concerned with the location and more focused on the house itself. They desire new builds with high-end finishes, especially properties with pools. Interestingly, there have been 11 sales over $10 million this year so far, while only two listings currently on the market are priced under a million.

Q1 2022 Real Estate Market Review

Buyer activity has not slowed down despite the pandemic fatigue. The first quarter of 2022 shows rapid growth in home sales and prices due to low inventory and high buyer demand. Home inventory is expected to increase, but it will remain a seller's market. Interest rates may rise slightly but are expected to remain relatively low. Buyers are advised to work with experienced real estate agents and obtain mortgage pre-approval to be prepared for the competitive market. In a seller's market, submitting offers well below the list price may not be effective. Sellers can feel confident as there are still plenty of buyers in the market, and working with an experienced agent will enable them to set the best home price and secure the right buyer.

The Year in Review: 2021

2021 was another banner year for Nantucket real estate, surpassing previous records with $2.3 billion in sales volume. Low interest rates, wealth accumulation, and the pandemic were major contributing factors. The pandemic forced people to reassess what is most important in life - family, friends, safety, security, and nature. Nantucket provided the perfect retreat, leading to a housing boom and more families calling Nantucket their long-term vacation and work-from-home destination. The demand exceeded the supply, resulting in a strong seller's market, with properties selling quickly and multiple offers common. Nantucket's natural beauty, open spaces, sophistication, and safety continue to attract buyers, making it a secure investment.

Q3 Market Snapshot

Just because the weather's cooled doesn't mean that Nantucket's real estate market has. Nantucket's market holds strong despite other areas showing signs of slowing. Limited inventory is a major factor in maintaining robustness. There are currently only 108 properties available for sale, with even fewer in turn-key condition. The entry-level homes are seeing high demand, and those properties are moving quickly. Nantucket's real estate continues to appreciate steadily, making it a strong investment choice.

2021 Q2 Market Snapshot

The Nantucket market remains robust, even with the challenges posed by the pandemic. The second quarter of 2021 has shown rapid growth in sales and prices due to low inventory and high buyer demand. Selling prices are exceeding 97% of the listing price, and properties under $2 million are in high demand, often sold at full asking price or with multiple offers. Inventory is low, and demand is high, resulting in a seller's market. It is an excellent time to sell your property in Nantucket.

2021 Q1 Market Snapshot

Despite the pandemic, the Nantucket real estate market is showing rapid growth in home sales and prices. Low inventory combined with high buyer demand has created strong competition. Working with an experienced real estate agent is key to navigate this market successfully. Buyers are advised to obtain mortgage pre-approval and be prepared to make strong offers. Sellers can feel confident about 2021 as there are still plenty of buyers in the market.

The Year in Review: 2020

2020 was an exceptional year for Nantucket's real estate market, surpassing previous records with $1.9 billion in sales volume. Despite the global pandemic, Nantucket experienced a housing boom as families sought refuge in spacious homes away from congested cities. The demand for turn-key properties with pools was especially high. The short-term rental tax had a slight effect on the rental market, but homeowners were wise not to raise rents significantly. Nantucket's real estate market remains strong, making it an excellent investment opportunity.

Q3 2020 Real Estate Market Snapshot

The Nantucket real estate market remains strong, despite the challenges posed by the global pandemic. The demand for properties with pools and turn-key homes continues to drive the market. Inventory is low, and properties are selling rapidly. Nantucket's natural beauty, safety, and quality experiences make it a desirable destination for families. The market shows resilience, and Nantucket continues to be an exceptional investment.

Q2 2020 Real Estate Market Snapshot

Despite the global pandemic, the Nantucket real estate market has remained resilient. The second quarter saw an increase in buyer activity, with properties selling quickly and multiple offers common. Demand for turn-key homes with pools was particularly high. Nantucket's natural beauty and safety make it an attractive destination for families seeking refuge. We anticipate continued strong performance in the market.

Q1 2020 Real Estate Market Snapshot

The first quarter of 2020 showcased the resilience of the Nantucket real estate market. Despite the challenges posed by the pandemic, Nantucket's market remains strong. The demand for homes continues, and buyers are eager to secure properties on the island. While uncertainty remains, Nantucket's appeal as a coastal vacation destination persists. The market is expected to remain stable, offering opportunities for both buyers and sellers.

The Year in Review: 2019

Nantucket's real estate market had another exceptional year, reaching a billion dollars in sales volume. The trend of turn-key homes with pools was prominent, although antique homes and other properties also found buyers. While the short-term rental tax had a slight impact on the rental market, Nantucket's continued desirability as a vacation destination ensures a vibrant market. Homeowners are encouraged to know the value of their properties and consider listing them if they are interested in selling.

Please note that these market snapshots provide a glimpse into Nantucket's real estate market and are subject to change. For full market reports and comprehensive information, please reach out to our experienced agents at Jordan Real Estate.

1