While transaction count and sales volume have decreased on Nantucket relative to 2021 & 2022, inventory remains low and demand hasn’t dropped significantly, which is keeping prices as high as ever. We’re slowly returning to the pre-pandemic “normal,” and if we see an increase in inventory, we’ll be right back to pre-pandemic levels.
State of the Nantucket Market:
Due to historically low interest rates and the pandemic shutdown, Nantucket saw exceedingly high demand which drove peaks in both transactions and sales volume in 2021.
While the transaction count in 2023 has dropped by 34% from the year prior, the sales volume decreased at a lower rate and had fewer highs and lows than in 2022. May 2023 was the only month that surpassed the prior year in both transactions and volume, led by the 26.8M sale at 25 Nonantum Avenue.
View the whole Nantucket Midyear Report >
Keep an eye on the Nantucket Rental Market…
Nantucket has always been an attractive place for buyers and renters alike, and the two markets weigh on each other when it comes to Nantucket home values. The Nantucket rental market has been on a historic surge since 2020, due to the combination of pandemic induced travel and the “work from anywhere” environment. But with a return to normalcy, and employees back in the office, the rental market has seen a shift in 2023. The current sense of the rental on Nantucket is an overall decrease of roughly 20-25% from a year prior. The question remains whether this is a permanent shift back to historic norms, or a temporary shift that will correct itself in 2024.
For prospective buyers/sellers, how the rental market shakes out will be a direct indicator of what’s to come in the sales market. If rental values remain lower for longer, and owners who believed (and may be dependent) on renting their homes at a specific amount that is no longer attainable, we could see the increase in inventory buyers have hoped for.
Working with a broker that is knowledgeable in both the rental and sales market on Nantucket is important for anyone looking to buy/sell on the island. Through a deep history and knowledge of the Nantucket housing market, I provide my clients with relevant and timely data points so they can make the most informed decisions.
If you’re interested in owning a piece of Nantucket and being part of the island community, I’d love to speak with you.