Well Wine Festival and Memorial Day/Figawi came and went and the inventory continues to grow, despite a handful more properties going under agreement.
The entry level of the market, those properties under $1mm, appears to be growing in size and I anticipate some price softening as properties stay on the market longer and the would-be buyers who need financing will find it more difficult to secure affordable financing as lenders tighten up their standards.
The middle of the market, those properties between $1.5mm and $4mm, still shows strength, but only those properties that are priced correctly from the time they get listed; those properties that have been price reduced from inflated levels are not seeing the same action.
As may be expected, the upper end of the market, those properties over $5mm, looks to be growing in strength as buyers of these types of home buyers tend to purchase without financing and they have enjoyed gains in their other asset portfolios here in the US and abroad.
Breakdown of Properties
May 15, 2007
June 15, 2007
Single Family
353
400
Multi-Family
18
18
Condos
40
39
Co-ops
5
7
Commercial
16
17
Vacant Land
91
98
Total Properties
523
545
Properties Under Agreement
Accepted Offers
18
29
Executed Purchase & Sales
27
26
Total Under Agreement
45
55
Year To Date Statistics
Houses
Land
Commercial
Totals
Total Transactions
113
25
1
139
Total Dollar Value
$237,433,000
$48,999,000
$1,579,000
$288,011,000
Median Price
$1,495,000
$1,000,000
$1,960,000
$1,495,000
Average Price
$2,101,000
$1,960,000
$1,579,000
$2,072,000
Percentage of Assessed Value
127.25%
166.60%
153.65%
134.11%
Percentage of Asking Price
93.17%
89.42%
100%
92.90%
Please feel free to contact meif you or someone you know would like to discuss acquiring a Nantucket property.
Well summer is officially here and the market appears to be picking up a bit along with the glorious weather! While the inventory continues to grow, there still are properties being acquired at all price points, which is a good sign. But with the growing number of properties on the market, I do expect some softening of prices particularly at the price point of $2mm and under (where the bulk of the inventory lies). It still remains the case that properly priced properties are still being gobbled up rather quickly (typically in less than 2-3 weeks).
These factors, though, bode extremely well for buyers who can still obtain historically low interest rates and who have many properties to choose from.
Below are some notes about the current inventory:
The least least expensive property on the market is 133B Old South Road, a studio condo with one bathroom, listed for $225,000
The most expensive property on the market is 37 Squam Road, a 7 bedroom, 8 bathroom oceanfront house on for $19,995,000. Interesting note: this is the house of Dennis Kozlowski (former Tyco CEO, now in jail), and it was REDUCED from $23.5mm...still way off IMO
Unofficially, the most expensive house that is for sale (but is NOT in our MLS system), is 7-11 Squam Road, the home purchased by Body By Jake owner Jake Steinfeld in 2005 for $10mm, which is for sale for $21,500,000...hmm...
Breakdown of Properties
15-May-07
15-Jun-07
01-Jul-07
Single Family
353
400
428
Multi-Family
18
18
20
Condos
40
39
43
Co-ops
5
7
7
Commercial
16
17
15
Vacant Land
91
98
98
Total Properties
523
545
611
Properties Under Agreement
Accepted Offers
18
29
32
Executed Purchase & Sales
27
26
29
Total Under Agreement
45
55
61
As always, please contact me with any questions about the market or if you or someone you know is interested in acquiring a property or securing a rental!
Perhaps prompted by the warmer weather, the buyers have stepped up and started acquiring Nantucket real estate again. Following the typical seasonal pattern, the late spring/early summer is showing that buyers are stepping back into the market, even though it is not at the same pace as the past two or three years.
According to the "Real Estate Report" (Nantucket Indpendent, 7/11/2007), there have been 193 total transactions worth about $331 million, while the same period in 2006 saw a total of 249 total transactions worth about $484 million.
Other notes from the report:
for the first time in five years, the average and median home sale prices and the average and median land sale prices has fallen from 2006
in the first half of 2007, 71% of sales occurred over $1 million; 53% of sales occurred over $2 million; 6% of sales occurred under $1 million
prices range from a $225,000 mid-island condo to a $21.5 million oceanfront estate in Squam
A note of good news is that properties at all price tiers are selling: houses under $1 million (which will always continue to sell well, as this is the entry level of the market), but also properties at the $2, $4, $6, and even $9 million tier are moving, which is good in that there does not appear to be any specific tier that is not moving. A few years ago there was as an abundance of properties between $2 and $3 million that just sat and sat on the market for many months until they either were taken off the market or eventually sold.
What I am gathering from all of this data is that we are finally returning to a more stable market but I would not go as far as calling this a 'buyer's' market. It may be more adventageous for buyers right now because of the large number of properties on the market, allowing them to pick and choose and compare homes, but most properties are still being purchased close to their asking prices, so prices are not falling precipitiously like in several other areas of the country. Also, it is important to remember that markets are cyclical and do not always go up...ANY market be it the stock market or the real estate market. The Nantucket market may be slighly insulated from the mainland in terms of price buoyancy, but it is not impenetrable as we now see.
At this stage, I'm advising my seller clients who are considering listing their properties and adding to the very high inventory level, to work with me to set accurate and realistic asking prices. Fortunately for the majority of Nantucket property owners, they do not NEED to sell so they are not adding more inventory to the market. My buyer clients, on the other hand, are enjoying taking their time browsing lots of properties and have no qualms about submitting 'low-ball' offers, even when they are outright rejected - this is what you can do when the market leans in the buyers direction.
As always, feel free to contact me with questions or if you are interested in acquiring a property!
I just got back from an proper bankruptcy auction at 209 Polpis Road. This 5,784 SF, 5 bedroom, 5.5 bathroom oceanview estate is situated on 4.1 acres in Polpis with first and second floor views of Polpis Harbor. Included in the estate are Guest Quarters, a pool and tennis court.
Although not as exciting as I think I was expecting, the bidding started at $3.7mm, and through about 6 or 7 bids, got up to $4.1mm. Then, just before saying "SOLD" the auctioneer called for a recess, contacted the owner and returned to reveal that the price was acceptable to the owner and that if no other bids were placed, then the high bidder - at $4.1mm - would win the auction. No one else stepped up, and one lucky fellow walked away with a great deal.
The property was listed with an agent last year for $6.5mm and it (obviously) did not sell. The property assesses for about $5mm, so it appears that the new owner has at LEAST a million dollars of cushion to play with. Will he flip it for a cool million or more? Will he keep it and enjoy it with his family? We'll find out!
The renovation of the historic Point Breeze Hotel will not be returned to a hotel as previously thought, but will essentially be converted into a condo-hotel. There will be 32 private one to two bedroom suites as well as six on-site cottages that will sell for $1 to $3 million. According to a press release, Palm Beach developer Robert "Bob" Matthews notes the need for such a place on Nantucket. "On an island where private clubs enjoy considerable cachet and the demand for private homes far exceeds supply, Point Breeze is destined to become Nantucket's most celebrated address...For a select few, this will be a rare opportunity to enjoy the island's ultimate luxury retreat."
The Point Breeze will still operate as a hotel where people can stay and dine at the restaurant, but the rooms will be owned individually and the luxury amenities - world class spa and salon, fitness center, swimming pool, tennis, wine tasting bar, cigar bar, full service concierge, and underground parking - will be enjoyed by the condo owners and members of the club.
As part of a five hotel/resort project planned by Bob Matthews, the other locations that are being developed besides Nantucket include Aspen, CO, Stowe, VT, Palm Beach, FL, and a 600-acre island in the Bahamas and club members will have reciprical access to the other resort locations's amenities once the project is fully developed.
I was in the Grand Union grocery store yesterday and saw Daphne Zuniga (remember Spaceballs!?), which got me thinking about all the VIP's that own property or frequent Nantucket. So I thought it would be interesting to compile an unofficial list of the folks that I know that own "houses" or have visited the 'grey lady':
Current or previous owner's of Nantucket real estate:
Eric Schmidt - CEO - Google Tommy Hilfiger - owner - Tommy Hilfiger Inc. Jack Welch - former chairman/CEO - GE Louis Gertsner - former chairman/CEO - IBM John Kerry/Teresa Heinz - Senator/Heinz Corp. heir Bob Wright - CEO - NBC Universal Roger Penske - owner - Penske Corporation/Penske Racing Michael Kittredge - owner - Yankee Candle Arie (Coco) Kopleman - president - Chanel Bill Belicheck - head coach - New England Patriots Abigal Johnson - Fidelity Investments heir Lee Iaoccoa - formerly of Chylser Corp. Michael Egan - former chairman - Alamo Rent-A-Car Kathy Lee Gifford - celebrity Jerry & Ben Stiller - actors Tim Russert - host - Meet the Press Chris Matthews - host - Hardball Paul Soros - businessman (brother of George Soros)
Others that have been to or frequent Nantucket:
Bill Clinton - former President Laura Bush - current First Lady Bill Gates - chairman - Microsoft Warren Buffett - Berkshire Hathaway Jim Carrey - actor Sharon Stone - actress Heather Graham - actress Mike Tyson - boxer Paul Giamatti - actor Brian Williams - host - Nightly News Katie Courac - host - CBS Evening News Dr. Bob Arnot - chief medical correspondent - NBC Herb Chambers - owner Herb Chambers (and his 197' yacht Excellence III) Jimmy Buffett - musician
These are just the ones that I know...there are probably many others...
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