Island real estate market sees yearly decline in transaction figures but a record-setting year for property values & high-end transactions
NANTUCKET, Mass., Jan. 25, 2023 /PRNewswire/ — After an unprecedented period for Nantucket real estate, the 2022 market showed signs of a return to normalcy in transaction numbers but dollar volume was 64 percent higher than pre-pandemic figures, the median home sale price skyrocketed 81 percent above the 2019 value, and half of 2022 dollar volume came from just 20 percent of transactions at the high-end of the market. Jen Allen of Fisher Real Estate writes that Nantucket has likely experienced a permanent shift in property values due to persistently limited inventory, increased island popularity and a new demographic of buyers.
With little inventory for buyers to come by in 2022, single-family home sales dropped below 300 transactions for the first time since 2013. The lost transaction volume was more than gained in increased dollar volume as the 286 home transfers represented $1.3 billion in sales. This was approximately 100 fewer transactions than the five-year average but nearly the same dollar volume. A new record was also set in 2022 for the highest property sale in Nantucket’s history with the $37.6 million sale of 4 Middle Valley Road, initially reported at $25 million.
Between a natural rise in property values due to supply and demand dynamics, and the increased activity in sales above $5 million, 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 surpassed $3 million, and it is 81 percent higher than in 2019, pre-pandemic. Fisher Real Estate states that until there is a significant increase in for-sale properties, it does not foresee a dramatic shift in pricing, even as transactions slow.
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SOURCE Fisher Real Estate