FORWARD MARKET INDICATORS
MONTH-END INVENTORY & PRICE REDUCTION ACTIVITY
Despite A 6-Year Inventory Low, Price Reductions Rise
As of November 30, 2017, there were 350 actively listed properties on the island, the lowest number of properties within the last six years. This inventory included 285 residential properties, 53 parcels of land and 12 commercial properties.
Despite this historically-low inventory, and one of the strongest markets on record, the number of price reductions rose modestly in November compared to previous years. For the 30-day period ending November 30, 2017, there were 23 price reductions, slightly higher than the previous high of 19 reductions during the 2012-2017 period. The price adjustments were as small as three percent of the listing price and as big as 22 percent (which has since resulted in a contract), with an average of a 10 percent reduction. The reductions took place across all price points, from a property listed for $225,000 to a property now listed for $6,395,000 (which has also since gone to contract).
HISTORICAL COMPARISON OF CONTRACT ACTIVITY
New Purchase Agreements On Par With 2016, $1 Billion In Sight
Just as with year’s past, new contract activity in November declined from both September and October levels. There were 40 Offers and Purchase & Sale agreements recorded (duplicates excluded) during November, a decline of one contract from a year ago but a more significant drop off from what is typically posted in September and October. Most of the contracts (26) were for properties last priced under $2 million but there were also six new contracts for properties last listed between $3 to $4 million, and one new, ultra-high-end ($10MM) contract.
Overall, year-to-date contracts were the lowest recorded for the 2012-2017 period, which may come as a surprise considering the strength of this year’s market. This is because there have only been 411 transactions through November, the second lowest number of transactions over this sixyear period (second only to the 404 transactions that took place through November of 2012). It is the dollar volume ($912 million) that is remarkable and the highest for the measurement period. In fact, we are likely going to see the 2017 Nantucket real estate market nudge up against the $1 billion mark (excluding the $37.5 million sale of Sun Island and covenant home sales) with fewer than 450 transactions.