In a recent article “Trouble in Paradise”  (Registration required) in Banker and Tradesman, writer Scott Van Voorhis mentioned that “some brokers even claim that there are signs that the Nantucket home prices may have finally hit bottom”.  Windwalker has recently reported that the 2012 first half results have been “the best stretch of sales since 2007” and indeed this may be the last best chance to find your Nantucket home at one of the lowest points in the market since the late 1990’s.

While 2012 year-to-date leading indicators for sales are up in the Nantucket real estate market, we are keeping our eyes on the growing inventory levels.  It may be the seasonal nature of our market but it could be a sign of a phenomenon called “pent up listing”.  We all recognize and understand why a tiny island with such a desirable lifestyle would experience pent up Buyer demand after the most recent downturn in the financial markets, but clearly there have been a host of Sellers just waiting for signs of recovery to list their Nantucket homes for sale.  The inventory of available properties has grown to 650 properties in August 2012 from 567 properties in June, an increase of nearly 15%.  While it is very normal to see inventory levels increase throughout the summer months in a seasonal market like Nantucket, this growth in the number of properties for sale exceeds the 10% increase we saw during the same time period in 2011.  It’s too early to tell whether inventory levels will continue to rise and whether the increase in the number of properties for sale will put pressure on any value momentum the Nantucket real estate market may be trying to achieve with the recent strength in demand.   Windwalker will be keeping a close eye on local market trends in order to present an accurate picture of our market’s dynamics.  Stay tuned…