As a follow-up to last week’s post, this week we are reporting on the rise in the average sale value of a Nantucket home, driven primarily by changes in the inventory landscape by price point. Here is a link to Part 1: Nantucket Real Estate Market Trends for April 2017: Contract Activity
TRAILING 5-YEAR AVERAGE HOME SALE PRICE
2017 Sales Indicate Property Values Still on the Rise
Through April 30, 2017, there were 84 single-family home transactions totaling an impressive $199 million. For perspective, this is nearly double the number of transactions witnessed during the same period five years ago and is just three shy of the same period in 2016. This robust volume has led to constrained inventory levels and, as a result, an increase in Nantucket property values. Through April 30, 2017 the average sales price of a Nantucket home was $2.37 million. Similar to the upward trajectory in transaction volume, this figure represents a nearly 50 percent jump from the average sales price in 2013 and a more moderate rise of three percent from last year. The combination of strong buyer demand and a rapidly diminishing supply of homes priced less than $1 million (see chart to the right), are the primary drivers of this increase.
NANTUCKET REAL ESTATE INVENTORY BY PRICE POINT
Total Inventory Down 12 Percent Year-Over-Year
The number of active residential, vacant land and commercial listings is down 12 percent from both one year ago and from 2015. As of April 30, 2016, the total months’ supply (how long it would take to sell all listings based on trailing-12 month sales) measured eight months. What is particularly interesting to note is how residential inventory by price point has changed over the last three years. Not surprisingly, the sub-$1 million segment witnessed the largest declines, followed by homes priced between $1 million and $2 million. Above the $2 million mark is where inventory, in some cases, has risen over the last two years. Of note are homes price between $4 million to $5 million and above $10 million.