On the islands, the breezes seem sweeter. At least, that’s the case for the housing market this year on Nantucket and Martha’s Vineyard. Even as the broader housing market in Massachusetts has begun to surge back this year, they’re breaking out ahead of the pack, providing a signal about the strength of the high-end market.
“I’ve been doing this about 15 years now, and we always say [Nantucket] is the last to fall and the first to respond,” said Brian Sullivan, an agent with Maury People Sotheby’s International Realty in Nantucket. “We’re seeing good activity all across the board, from $200,000 to $20 million.”
Of course, while yearly sales on the mainland number in the tens of thousands, a few dozen transactions one way or another are enough to change the atmosphere in the rarefied air of Nantucket and Dukes counties. But the signs so far this year are confidence-boosting: In October, sales on Nantucket were more than double their number this time last year, going from 14 to 29, and up 25 percent overall for the year to date, beating the state average of 21 percent. Martha’s Vineyard was even better, with sales up 38.3 percent year-to-date.
Some of those sales have been spectacular: A recent closing in the red-hot Lincoln Circle neighborhood in Nantucket went for $18 million. The island also saw the highest listing price ever in the state this year, the $59 million Swain’s Neck estate, which came on the market in May (though it is still awaiting a buyer).
But that isn’t to say that buyers there aren’t driven by some of the same concerns that are prompting buyers across the state to take the plunge.
“Prices have come down steadily over the last several years, and the interest rates are crazy-low,” said Jeffrey Lee, broker/owner of Lee Real Estate. “Now there’s a buyer that could never really afford Nantucket who now can afford it. Average prices have not moved up a lot – there’s just a lot more sales.”
At the same time, agents are seeing renewed confidence in the market from buyers.
“I think there have been a lot of people waiting on the sidelines, and now they’re ready to buy. Nobody’s getting any younger,” laughed Mary R. Taaffe, an agent with Windwalker Real Estate on Nantucket.
Of course, the islands also benefit from some unique factors as well, with most purchasers long-time vacationers who come from all over the country, increasing the pool of potential buyers.
“It’s not all just New York and Boston finance that comes here. So, as some groups are not doing as well, others are, and that feeds us, and keeps us slightly ahead of the curve,” explained Sullivan.
And the rental market has been strong and only getting stronger, said Michele Kelsey, an agent with Jordan William Raveis Real Estate. “When renters can’t seem to find what they’re looking for, and they’ve been here for a few seasons, they often start looking to buy. They’re willing to make that commitment,” she explained.
Some brokers are also hoping for a particularly strong end to the year, with many sellers looking to close in 2012 in case the federal government’s negotiations over the ‘fiscal cliff’ result in changes to the tax rate for capital gains.
It’s definitely been a motivator for her sellers, said Gloria Grimshaw, broker/owner of Jordan William Raveis. “We are having a lot of last-minute activity, with the pending tax increases. A lot of people are looking to make a deal within this calendar year,” she said.
Other brokers were more sanguine. “I haven’t had anyone come to me and say ‘I’m desperate to sell before the end of the year,’” said Lee.
Taffe agreed.
“There have been some sellers that have had incentive there, but we’re still in a buyer’s market. And some buyers still have the mentality where they’re looking for these fascinating discounts. Unless it’s a perfect storm, that’s not going to happen here,” Taffe said, but with bargain-hunting buyers reluctant to bid up homes, sellers would rather hold out for a better price and deal with the tax implications later.
Email: csullivan@thewarrengroup.com
