Ken Beaugrand, Realtor President, Nantucket Real Estate

SPRING 2010

The season has started with perhaps one of the most beautiful Daffodil Days in recent memory. As we move into the summer season we look back and we look ahead

The Past Provides Indicators for the Future:

              Last year was a challenge to all. The strong fourth quarter allowed the year to end on a  better than expected note. Full year transactions of 237 compared to prior year’s 248 were only down 4.4%, while dollar volume of $434.6 million vs $574.3 million,  down significantly at (24%). So while the year was down, the fourth quarter ended with good momentum.

              In 2009, selling prices reverted to levels last seen in 2004 before the recent surge in values.

First Quarter 2010

              It is nice to report positive findings both nationally and on Nantucket.

              Nationwide, first quarter 2010 shows encouraging data as total sales of previously owned properties have improved each month against the prior month as well as against same month the previous year.

              On Nantucket, first quarter 2010 has had a significant uptick. Sales volume was $108.9 million versus $53.3 million for an increase of slightly more than 100%. There were 62 transactions vs.28 in 2009 for a 121% increase. On average, properties are selling at 10% below last asking price and assessed value.

The near term future:

• Wall Street has performed incredibly well. Earnings reports are good; forecasts are better.
• Main Street is evidencing some vitality. Consumers are showing more confidence; they are back in a purchasing mode. We will not see the over abundance and exuberance of prior years BUT we do see an overall improvement.
• Job markets are showing some signs of life.

My outlook for the real estate market is conservatively favorable:

• For all those who have been sitting on the sidelines, my view is that we are beyond the bottom. Don’t let your Nantucket home slip by because you were reluctant to act.
• Buyers still have the opportunity to make an attractive purchase, while sellers are beginning to realize values closer to their expectation.
• Mortgage rates are at an historic low, although sure to rise in the coming months.
• Many price worthy opportunities are out there.

These factors lead me to conclude that the outlook is better than it was last summer and in totality is POSITIVE.

Ken Beaugrand, Principal Broker/Owner