Like 2019, only significantly more pricey
After an unprecedented period for Nantucket real estate, the 2022 market showed signs of a return to normalcy, at least in transaction volume. While still a remarkable year as measured against all pre-pandemic figures, 2022 sales and dollar volume metrics declined significantly from the two previous years. With over 1300 transactions and over $4 billion in island property changing hands during 2020-2021, the recent rise in interest rates and a consistently constrained supply of property inventory made for an inevitable momentum shift.
All told, there were 430 transactions totaling $1.63B in 2022, a respective decline of 41 percent and 30 percent from 2021. Interestingly, the total number of transactions was nearly identical to 2019, but 2022 dollar volume was 64 percent higher than it was just three years earlier, prior to the ‘pandemic peak’. These figures reveal the enormous impact the last two years have played in transforming property values and page 6 details how the median home sale value aligns with this significant surge in dollar volume.
What so far appears to be different about this most recent peak compared to 2005-2007, is the supply of available homes has remained well below historical figures. This chronically low inventory has been the main driver of the recent and significant property appreciation. Unless there is a significant increase in for-sale properties, we do not foresee a dramatic shift in pricing, even as transactions slow.
Let’s dive in…