What do bidding wars in Naushop, resale of properties within 2 years for 15%+ more and building permit numbers being up year over year for the last three years tell you? Not sure, but tells me that this is a strong market and values are increasing. The Nantucket market has historically mimicked the stock market. With the Dow reaching all time highs, history tells us that demand for Nantucket property is on the rise. And the amazingly low interest rates are further juicing demand. Inventory is at its lowest level in the last 10 +/- years. So, couple increasing demand with falling supply and real values go up.
I spoke with one of Nantucket’s main appraisers recently and he said he is no longer checking “Stable Values” on his appraisals; he is checking “Increasing Values”. Properly priced listings in very desirable areas (all areas of Nantucket are desirable) are going to sell quickly in this market. For instance, four elevated acres that have potential to be sub-divided into four lots in Monomoy just came on the market for $3.25M. That’s a strong value. My prediction, the property has an accepted offer by my next column. Until then, let the show continue!