Today’s WSJ article “Market for Vacation Homes Is on the Rise” suggests second home markets are enjoying a surge in activity as buyers are reaching into their pockets to snap up vacation homes, lured by low prices and stronger equity portfolios. This is great news for Nantucket real estate and clearly supports the trends our market is seeing: 2010 dollar volume increased 54 percent and transaction volume improved 28 percent over 2009’s activity.
With still-elevated inventory and prices declines greater than 25 percent in certain areas, buyers are recognizing that now is an opportune time to find their dream home. Prices on certain properties have dropped low enough that we are once again seeing multiple offers on the same property, often elevating the final sales price at or above the list price. While this is certainly not the case for all properties, this kind of activity is definitely positive for the market. Sales of vacant land on Nantucket increased over 30 percent from 2009 transactions and speculative buying by area builders is occuring once again. Another sign pointing to a significant turnaround in the Nantucket market was the surge in ultra high-end transactions ($10mm+ properties) in 2010 which jumped to levels not seen since 2006-2007. Signs point to a very healthy 2011!