There are many signs of an improving market. Here are my Top 5 signs the market is improving counted down.
5) A fourth bank, Hingham Savings, just closed on 35 Main Street, a prime commercial location, for $3.6M and are probably going to spend another $1.5-2M outfitting the building. You need to do a lot of business to cover a $5M nut.
4) The rental market is strong. This shows consumer confidence is on the rise and Nantucket is becoming an ever more desirable destination.
3) A handful of smart spec. builders, i.e. the ones that did not go bust during the bust, are just finishing their projects in time for Summer ’13. That means, realistically they had to start the design phase of their projects sometime in ’11. The smart spec. builders typically are ahead of the curve.
2) The high-end, and the low-end, are doing well. The high-end buyers are often leaders of their industries that have a clear picture of what is going on in their industries, so if they are confident, there is a reason why. The low-end forms the base of the market and is often a local buyer. When local buyers step up, that means they are confident with their financial situation, which is anchored to the Nantucket economy. The middle market follows suit. Supply is down, demand is up. This is Econ. 101 and results in rising prices.
Drum roll please. The Number 1 sign that the market is on the up and up is:
Your plumber won’t call you back! That means there is so much work that he doesn’t care if he works for you or not.
Look forward to the start of the season, Daffodil Weekend!