By all accounts, the month ending December 31, 2012 was a banner month for Nantucket real estate.  A market that had been steadily improving seemingly reached fever pitch during the final 31 days of the year as strong buyer demand was met with an increasing number of sellers inclined to achieve a 2012 sale ahead of what was an uncertain future tax climate. For the month of December, there were 67 properties that changed hands for $135 million.  Thanks to this high transaction volume as well as two +$10 million transactions, December’s total dollar volume surpassed the five-year historical average by 150%.  It also marked the highest number of monthly transactions and highest dollar volume for all of 2012 and was the best month, as measured by transactions, since October 2005.

While Nantucket real estate activity in December undoubtedly proved to be a highlight of 2012,  there have been a handful of reports which have not clearly distinguished non-monetary property transfers from true, arm’s-length property transactions, leading some readers to believe that there were far more sales in December than those that actually took place.  Non-monetary transfers, those between family members or into and out of trusts and LLC’s, take place every calendar year, yet are not required to be recorded at the Registry of Deeds.  Given the uncertain tax climate in the waning months of 2012, December proved to be an exceptionally busy month for these non-monetary transfers as property owners made tax and estate-planning decisions.   In total, there were 445 “transfers” in December, a record high for any single month.  Only 67 of these, or 15 percent excluding foreclosures, were arm’s-length sales for monetary consideration.  Though December was a record month for Nantucket real estate sales, it is important to clarify this distinction!

Stay tuned for Windwalker’s detailed 2012 Year-End Recap!