the Real News
2017 made history as Nantucket real estate’s fourth $1 billion dollar year. Coming in at number two of all time, just behind 2005 (number one), just ahead of 2004 (number three), with 2014 coming in at number four. 2017 reshuffled the deck somewhat by discontinuing a recent multi-year trend since 2009 (even years up, odd years down), 2015 ended on a downward note from 2014, falling short of the lofty $1 billion dollar milestone, while this multi-year trend continued through 2016, lifting the market back up somewhat. Another odd year (downward trending in recent years), 2017, which began on a somewhat downward note, finally broke the pattern. 2018 broke the record for the all time record year in dollar volume, topping $1.2billion. 2019 has pulled back from 2018’s lofty levels, coming in just under 2017’s totals. Let’s take a look.
In real estate analysis, we need to look backward in order to look forward. Looking back over recent years (for comparison to 2019), we see that in 2017, there were a total of 546 transactions, with a total dollar volume of $1,066,079. This was an approximate 2% increase in transactions and a 10% increase in dollar volume over 2016’s numbers. In 2018, there were 543 total transactions (a 0% decrease over the 546 transactions for 2017), and a total dollar volume of $1.202 billion, a 13% increase from the $1.066 billion for 2017. At the end of 2019, there were 472 transactions (down 13% from 2018), and a total dollar volume of $1,027,608 (down 15% from 2018).
Foreclosures and foreclosure related transactions made up approximately 7% of the overall market in 2010. For 2012, there were 35 foreclosures, representing approximately 3% of the market based on dollar volume. Foreclosures in 2014 represented approximately 1% of the market by dollar volume. For all of 2015, there were 4 foreclosures, representing about 0.2% of the market by dollar volume. In 2016, there were 10 foreclosures, representing about 0.1% of the market by dollar volume. In 2017, there were 6 foreclosures, representing about 1% of the market by dollar volume, helped out by an $8 million dollar foreclosure. In 2018, there were 5 foreclosures, representing approximately 1% of the total market. At the end of 2019, there were 5 foreclosures, representing 0% of the total market.
In 2017, the average home sale was $2,373,000 (up about 4% from 2016), supported by 276 home sales over $1 million, 87 home sales over $3 million, 35 home sales over $5 million and 10 home sales over $10 million. The average sale in the $500,000 to $999,000 range was $758,000, in 2017, statistically unchanged for this market segment from 2016. For 2018, the average home sale was $2.615 million (up 10% from 2017), supported by 83 home sales over $3 million, 44 home sales over $5 million and 11 home sales over $10 million. The average sale in the $500,000 to $999,000 range was $788,000, up about 4% from the $758,000 average for this market segment in 2017.
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