Real  Estate  Market  Update  –  June  2012  by Dan Dunlap , July 8, 2012

While   the  National   Association   of   Realtors   reported   pending   homes   sales   (the   number   of   contracts  signed)   increased   5.9%   to   101.1   from   95.5   in   April   and   the   Commerce   Department   reported   that  Construction  Spending  rose  0.9%  in  May  (the  biggest  gain  since  December  2011),  the  best  news  for  home  buyers  has  been  that  mortgage  rates  have  continued  to  hold  at  historic  lows.  

During  the  first  5  months  of  the  year  real  estate  activity  on  Nantucket  was  mostly  higher  when  compared  to  2010   and   2011,   but  not   so   in   June.   June   2012   finished   behind   June   2011   and   2010   in   sales   volume  (28.4%  lower  than  in  2011  and  22.57%  lower  than  in  2010)  and  the  number  of  properties  sold  (2.86%  lower  than  2011)  but  higher  than  in  2010    (9.68%).    

 Also  worth  noting;  the  volume  and  number  of  properties  sold  in  June  fell  dramatically  short  of  May’s  49  transactions   totaling   almost   $85   million   ($16   million   of   which   was   the   land   transaction   between  Nantucket  Land  Bank,  Sconset  Trust  and  Coffin  etal).  

                                                       Single-­‐family   home   sales   made   up   83.56%   of   the   sales   volume   in   June   and   made   up   75%   of   the  transactions.  Single-­‐family  dwellings  under  $750,000  made  up  33%  of  June’s  home  sale  transaction  and  accounted   for   8.89%   of   June’s   total    sales   volume   on   Nantucket.   There   were   10   sales   between   $1.05  million  and  $2.5  million.    Unfortunately,  we  continue  to  see  higher  than  average  foreclosure  activity  (for  Nantucket),  so  this  year’s  results   are   somewhat  misleading  because   of   properties   being   placed   in   REO   portfolios   versus   going  to  end-­‐users.  While   18.46%   of    this   year’s   property   transactions   involved   foreclosure   actions   (11.76%   in  June),  they  accounted  for  approximately  6.67%  of  the  total  sales  volume  (4.46%  in  June).    YTD  Activity:    • During  the  first  six  months  of  2012,  195  real  estate  transactions  were  completed  compared  to  157  for  

the   same   time-­‐period   last   year.     Of   these   transactions,  144  were   single-­‐family   homes   (including  foreclosures),  compared  to  121  single-­‐family  homes  sold  during  the  same  time-­‐period  in  2011.  • The   total   number   of   properties   sold   during   this   time-­‐period   was  24.2%   higher  and   the   dollar  

volume  27%  higher  than  during  the  same  time  period  in  2011.  .  

   • Single-­‐family   home   prices   have   averaged  $1.570   million  year-­‐to-­‐date,   up   9.87%   from   2011   levels  

while  the  median  price  increased  2.68%  to  $1.033  million.    

 • This  year,  single-­‐family  home  sales  have  averaged:  

• 86.64%  of  their  final  asking  price  • 83.29%  of  their  original  asking  price  • 98%  of  their  current  assessed  valuation  (for  the  139  properties  showing  an  assessed  valuation)  • Average  time  on-­‐market  was  308  days    

• There   have   been   16   land   sales   this   year   with   an   average   sale   price   of  $1.556   million.   These   16  parcels  sold  for  an  average  of:  • 95.6%  of  their  final  asking  price  • 89.4%  of  their  original  asking  price  • 91%  of   their   current   assessed   valuation   (for   the   12   parcels   showing   an   assessed   valuation   and  

excluding  the  Coffin  property)  • Average   parcel   size   was   31,651   sq.   ft.   (excluding   the   119+   acres   involved   in   the   Land  

Bank/Sconset  Trust  transaction).  • Of  the  16  land  transactions,  7  involved  parcels  less  than  1/4  acre.  

• Average  time  on-­‐market  was  238  days    Availability:    On   June  30th,   there  were  526  properties   listed   for   sale   on  Nantucket,   388  of  which  were   single-­‐family  dwellings,   compared   to  539  properties   listed   for   sale    (373  of  which  were   single-­‐family  dwellings)   this  time  last  year.    At  the  end  of  2011  there  were  483  properties  listed  for  sale  compared  to  432  at  the  end  of  2010,  488  at   the  end  of  2009  and  497  at   the  end  of  2008.    Quite  simply,  Nantucket  continues   to  have  a  high  level  of  inventory  for  sale.   Bottom-­line:    There  continues  to  be  a  wide  variety  of  properties  available,  at  more  attractive  pricing,  than  two  or  three  years   ago   and   sales   are  up  because  people   are  beginning   to   again   see   “value”   in  Nantucket   real   estate.  Combined  with  attractive  interest  rates,  an  abundance  of  quality  inventory  and  more  realistic  pricing,  this  is  the  time  to  start  seriously  looking…