Ken Beaugrand, Realtor President, Nantucket Real Estate

Market Research

Summer, 2009

In our spring commentary we discussed some of the questions frequently asked by buyers and sellers about market conditions. Of late, the number one question has been “Is the market at the bottom?” If I had a crystal ball, the answer would be easy. But my crystal ball is more like a Magic 8-Ball with just one answer “Concentrate and Ask Again”.

In recent weeks, Wall Street and Main Street alike have been reporting positive figures. Some sectors have had unexpectedly good reports, such as the sale of existing homes, and quarterly sales figures in the automotive and financial sectors. This isn’t to say we don’t have a ways to go. But I believe we are on the road to recovery and will see steady improvement over the coming months.

What does this mean for potential buyers? As the economy stabilizes, the pressures driving home prices down will lessen. In our market of primarily second homes, this means that sellers who are still showing some flexibility will be less likely to respond positively to offers that are significantly less than ask. As a buyer, if you have identified a property that fits your objectives, make an offer. Owners are still considering offers and an offer made is an offer countered, which will give the buyer invaluable insight into the Seller’s state of mind. Don’t let the home you have dreamed of slip away because you were reluctant to act.

Sellers can breathe easier knowing that buyers are starting to feel better as the economy strengthens.  Qualified buyers are finding financing because lenders take comfort from the fact that Nantucket properties are selling for close to the assessed value. As purse strings loosen, sellers who have properly priced their properties will begin to see activity which will lead to a sale.

So polish up your Magic 8-Ball and I think you will get the answer “Outlook is Good”.

Sincerely,

Ken Beaugrand, Realtor

President, Nantucket Real Estate Co.