Single-Family Home Sales Overview
Median home sale up 81% since 2019
With little inventory for buyers to come by in 2022, single-family home sales dropped below 300 transactions for the first time since 2013. What was lost in transaction volume was more than gained in dollar volume as the 286 home transfers represented $1.3 billion in sales. For reference, this is approximately 100 fewer transactions than the five-year average but still nearly the same dollar volume.
As we detail on the next page, most of this increased dollar volume stemmed from another stellar year of high-end and mega-high-end ($20M+) property sales. But overall property appreciation certainly played a major part. The chart on page 3 includes the year-to-year change in sales by price point which illustrates that the sub-$2 million market represented an average of 38 percent of sales over the last five years. This same segment dwindled to 22 percent of total sales in 2022 thanks to an overall rise in property values. Every other million-dollar price point above $2 million also saw measurable growth in 2022, with sales between $5 million to $6 million taking the lion’s share of the increase from both a year-to-year and five-year average comparison.
Considering the limited supply of homes, the strength in the high-end of the market and the fact that the third year of increased pricing didn’t deter multiple buyers from vying for the same property, the 2022 median home sale value rose 21 percent from 2021 and stood at $3.36 million by year’s end. This is the first time this value has surpassed $3 million, and it is 81 percent higher than in 2019, pre-pandemic. The question is whether Nantucket real estate has sustained a largely permanent shift in property value based on elevated demand from a demographic of buyers who may perceive a discount to the Hamptons or Palm Beach, or whether this pricing is simply a result of “abnormal” times and prices will drift back to more historical norms. We have a sense it may be more of the former than the latter.