What goes up must come down – perhaps.
After the upsurge of sales in 2020 and 2021 resulting from the pandemic, Nantucket real estate began to level off in 2022 displaying statistics more commensurate to the pre-pandemic market. 2022 exhibited a 29% decline in dollar volume and 41% fewer transactions over 2021. Despite the decline in dollar volume and the number of transactions, the average sale price was up from $2,832,000 in 2021 to $3,448,000 in 2022.
Curiously the number of transactions in 2022 was like in 2019. Yet, the dollar volume was 60% higher, an indication of the significant influence the past two years contributed to the escalation of property values. The main contributing factor to continuing appreciation is the low supply of inventory and strong buyer demand. With a short supply of inventory in 2022 home sales dropped but increased appreciation culminated in a strong dollar volume, resulting from several high-end and uber-high-end property sales. A significant change in the market is the lack of entry-level homes, and properties under $1,000,000. The past 6 years have recorded a serious decline year after year phasing out this price point and creating grave consequences for Nantucket’s workforce.
To summarize, Nantucket is an incredibly beautiful, unique, and special island high in demand with limited real estate opportunities. These characteristics continue to keep the value up and investment secure.