FORWARD MARKET INDICATORS
THIRD QUARTER CONTRACT ACTIVITY
Weather Likely The Culprit For September
New contracts during September declined precipitously in September compared to previous records measured since 2012, likely because of Hurricane Jose and various other weekends where the island was greeted with unseasonably bad weather. A total of 47 contracts (both Offers and Purchase agreements) were recorded, a notable decline from the 62 booked during September 2016 and the only September since 2012 to drop below 50 contracts.
In total, third quarter contracts during 2017 measured 153, well below the average of 193 since 2012. As always, Fisher points out that contract data is not entirely reflective of current market conditions since they aren’t always recorded in a timely fashion, if at all. That said, Fisher relies on the basic assumption that a certain percentage of omissions are likely similar year to year. A glance at preliminary October sales activity suggests we will be close to 2016 figures but well below what was printed during October during the years 2013-2015.
MONTH-END INVENTORY & PRICE REDUCTION ACTIVITY
6-Year Inventory Low; Price Reductions Decline
Not surprisingly, total property inventory in September represented the lowest Nantucket real estate inventory within the last six years. As of September 30, 2017, there were 405 properties on the market as compared to 443 one year ago. This included 295 single-family homes, 74 parcels of land, 14 commercial properties and
22 co-ops, multifamily properties or condominiums.
Based on the strength of the market, the number of price reductions also declined in September. There were just 36 price reductions for the 30-day period ending September 30, 2017, compared to 45 price reductions one year ago and 56 in 2015. The average price reduction (from original list price) was 11 percent, slightly higher than one year ago when the average was 9 percent. Several of these price reductions have already spurred contract activity so we’ll see what fourth quarter reductions look like for sellers looking to achieve a sale by year’s end.