Jan 2022
State of the Nantucket Real Estate

The 2021 Real Estate Market on Nantucket had another record year in 2021. According to the Town Assessor’s office, in 2021 that there were a total of 825 properties sold in the Year that ended 12/31/2021 with an associated total dollar volume of $2.337 billion. These numbers compare favorably to those for the 2020 year where a total of 679 properties were sold (an increase of 22% of unit sales in 2021 versus 2020), and a dollar volume of $ 1.89 billion (an increase in 2021 versus 2020 of 23%).

Early indications in 2022 show similar strong activity, and low inventories. For example, for the month that ended January 31st 2022, there were only a total of 50 properties for sale compared to173 properties the previous year a whopping 71% reduction in inventory.

Further, the average sale price in 2021 was $3,109,062, which was 7.8 percent higher than in 2020. The average sale compared to the assessed value of the property was 156 percent higher, which is a 20.9 percent increase from the sale prices in 2020. In 2021, properties were on the market for an average of 133 days. The numbers used were compiled the Nantucket Multiple Listing Service (MLS).

Most analysts have concluded that such strong numbers in 2020 and 2021 were due primarily to three main factors. These were: (a) the COVID-19 Pandemic, and the flight from the cities, more specifically from New York City, to well known vacation areas such as “The Hamptons”, Martha’s Vineyard, and Nantucket, (b) low interest rate, where the prime rate has remained almost at zero percent, and (c) the extraordinary Bull Market of 2021, whereas the Dow Industrial Average ended up 18.65% above the opening bell in January 2021, or better yet up 20.94%, when dividend reinvestment are included.

Nevertheless, the combination of: (a) higher interest rates, as declared by the Federal Reserve Bank in its most recent meetings, (b) the end of the Pandemic, and (c) recent corrections on the stock market, point in only one direction. That is, we expect that the Nantucket Real Estate market will be somewhat subdued in 2022, and the spectacular numbers of the years 202 and 2021 WILL NOT BE REPEATED.

Quarterly Comparissons Total Number of Sales

Nantucket Market 2021- Quarterly sales