APRIL Windwalker Reportc3155192.r92.cf0.rackcdn.com/ckeditor_assets/attachments/...Home Inventory Absorption by Price As of April 30, 2013 Median Price Performance Historical Analysis

X HIGHEST SALE$2.2 MiLLiOn20A MADAkeT ROAD, WeST Of TOWnMonths on Market: 5.5Sale Price to Orig. Price: 92%

I LOWEST SALE$240,0008C ThiRTy ACReS LAne (Condo), MiD-iSLAnDMonths on Market: PRiVATe SALeSale Price to Orig. Price: PRiVATe SALe

NOTABLE SALE23 COMMeRCiAL WhARf, TOWnSOLD fOR $720,000, OR 19% Of The ORiginAL ASking

PRiCe Of $3.85 MiLLiOn. giVen The PROPeRTy’S

LOCATiOn, TheRe iS SignifiCAnT unCeRTAinTy AS

TO WheTheR The DWeLLing COuLD be MODifieD,

exPAnDeD OR RePLACeD if DAMAgeD.

Windwalker ReportNANTUCKET REAL ESTATE REVIEW

NANTUCKET REAL ESTATE ACTIVITY for the month of April included 34 property sales

totaling $27.2 million. This activity brings yearly sales activity through April 30, 2013 to a total

of 91 property transfers totaling $100.2 million, a decrease of 12 percent and 27 percent

respectively from the same time period in 2012. While year-to-date activity is still trailing 2012’s

performance, April showcased an uptick in transaction momentum, both in the number of

actual closings (the highest number of April sales dating back to 2007) and in the number of

documented properties that went under agreement…

Transaction Highlights

X TRANSACTION VOLUME (#)during April improved 31% from the same

period in 2012, the first year-over-year increase

thus far in 2013.

I DOLLAR VOLUME ($)during April declined 40% from the same

period in 2012 largely as a result of the high

concentration in <$1 million sales.

I PROPERTY INVENTORY Levels totaled 411 as of April 15, 2013, a 45

percent decline from the historical high (Sept

’09) and a 16% decline from April 2012.

I MEDIAN AND AVERAGEsale prices for all property types continued to

decline in April. These declines reflect the

sustained concentration in <$1 million

property sales compared to one year earlier.

APRIL 2013

April in Focus

www.windwalkerrealestate.com Sales Research Rentals Blog12Oak Street Nantucket, Massachusetts 02554 508 228 9117

Property Sales (#) 26 34 30.8 % 103 91 –11.7 %

Dollar Volume ($) $45,511,750 $27,172,223 –40.3 % $137,481,523 $100,153,323 –27.2 %

Avg. Sale Value ($) $1,750,452 $799,183 –54.3 % $1,334,772 $1,100,586 –17.5 %

Median Sale Value ($) $1,025,000 $612,500 –40.2 % $875,000 $675,000 –22.9 %

Avg. Sale % of Original List 69% 75% 4.7 % 74% 80% 8.1 %

Avg. Sale % of Last List 83% 90% 4.9 % 88% 91% 3.4 %

Avg. Sale % of Assessed 103% 102% 6.4 % 98% 101% 6.3 %

Avg. Months on Market 20 16 –20 % 18 16 –11.1 %

Nantucket Real Estate Dollar & Transaction VolumeHistorical Analysis as of April 30, 2013

April YTD through April 30

www.windwalkerrealestate.com Sales Research Rentals Blog

Windwalker Report NANTUCKET REAL ESTATE REVIEW APRIL 2013

THE LOW-END THEME is one we’ve been discussing forweeks now on the Windwalker blog. First-time Nantuckethomeowners taking advantage of low mortgage rates and realestate investors searching for yield have created a surge in thenumber of low-end sales. Of the 34 property sales that tookplace in April, 74 percent were sales for under $1 million. Thisis consistent with previous month’s activity (Jan = 75%; Feb =65%; Mar = 81%) in 2013 but far more concentrated than justone year earlier when low-end sales represented only 45percent of April transactions. In total, through the first fourmonths of 2013, 73 percent of all transactions have been in thesub-$1 million segment.

THIS CONCENTRATION IN sub-$1 million sales isresponsible for the year-over-year declines in dollar volume, aswell as median and average sales values. While this may seem abit of a surprise, given the myriad headlines of nationalhousing price increases, in 2012Nantucket sales activity wasmore evenly spread among mid- and high-end price points. Sowhile property values are not actually declining, theaggregation of low-end sales thus far this year is skewing thedata. The good news for values overall is that the surge indemand for sub-$1million properties is quickly depletinginventory in this entry level segment of the market. Althoughsub-$1million sales represent nearly 74 percent of alltransactions, they account for only 25 percent of all availablelistings as of April 30th. With exceptionally high demand anddeclining inventory, the entry-level price point is the onlysegment of the market where trailing 12 month home sales farexceed current home inventory. This translates into a very quickabsorption rate — homes for sale under $1 million areprojected to sell in just four months. All other price pointsrange from a projected marketing time of 14 – 26 months [see absorption graph].

IN CONTRAST TO THE ACTIVITY in the lower end ofthe market, high-end inventory continues to increase. Duringthe month of April, 15 properties with asking prices over $5 million totaling $152.15 million have come to market. As Nantucket hasn’t yet seen strong sales activity in this pricesegment, listings that carry an asking price of over $5 millioncurrently total 45 properties (40 of these listings are single-family homes). As we move into the summer selling season,it appears that there may be a gradual shift into higher endproperty sales. In fact, during April and May, five propertiescarrying price tags above $5 million went under agreement.These property sales should begin to counterbalance theeffects the low-end is having on local housing metrics.

Stay tuned to our weekly and monthly reports to keeptrack of Nantucket real estate developments. Real-timesales info and weekly market commentary can be foundon our newly launched research hub on the Windwalkerwebsite!

WINDWALKER REPORT PRODUCED BY:

Jennifer Shalley, Research Director / Broker Associate Peter Kaizer, Research Analyst / Sales Associate

12Oak Street Nantucket, Massachusetts 02554 508 228 9117

SUMMARY DATA

Home Inventory Absorption by Price As of April 30, 2013

Median Price Performance Historical Analysis as of April 30, 2013

Nantucket Property Sales by Price Point Through April 30, 2013