FORWARD MARKET INDICATORS
INVENTORY LEVELS BY PRICE POINT
Most Price Points Decline With A Notable Exception
As of October 31, 2017, total inventory for all Nantucket property types (residential, land and commercial properties) fell by 8 percent from 2016 and by 22 percent from the same period in 2015.
A look at the above chart indicates that inventory priced below $2 million and between $3 million and $4 million saw the most significant declines. Most notably, properties listed between $5 million and $6 million more than doubled, increasing from 14 properties in 2015 to 30 properties by the end of October 2017. Eight of these properties were speculative projects. For a price point that averages seven transactions a year, it will be interesting to see how long it takes for inventory absorption.
Inventory levels for properties listed above $6 million remained largely steady over the last three years.
HISTORICAL COMPARISON OF CONTRACT ACTIVITY
New Purchase Agreements Rose Modestly In October
After a sizable drop in new contracts during the island’s inclement September, new contract activity rose modestly by four contracts in October. There were 51 Offers and Purchase and Sale agreements recorded (duplicates excluded), the same number as one year ago. Most of the contracts were for properties last priced between $1 million and $2 million but there were also two new ultra-high-end ($10MM+) contracts, adding to what has been a solid year for the high-end of the Nantucket real estate market.
Based on the contract dip in September, the moderate contract activity in October and preliminary November contracts, it will be a very close call as to whether the Nantucket real estate market will reach the $1 billion mark for full year results. That is, of course, unless you add in the $37.5 million sale of Sun Island and/or covenant home sales which, to date, have totaled nearly $9 million. Fisher will not be including these transactions in the totals so there should be a variety of full-year figures floating around by year’s end.