X HIGHEST SALE$6,500,00016 LincOLn AVenueMonths on Market: 28.4 months Sale Price to Orig. Price: 90%

I LOWEST SALE$215,000 (LAnD)63 SurfSiDe rOADMonths on Market: 29.2 months Sale Price to Orig. Price: 75%

NOTABLE SALEAfter a total of 93 months on the market, a condounit at 78 Arkansas Avenue finally transferred for$310,000. This represents a 27% discount fromthe original list price set nearly 8 years ago. in May,10 properties marketed for more than two yearssold, suggesting that even in today’s strongmarket overpriced properties will linger.

Windwalker ReportNANTUCKET REAL ESTATE REVIEW

NANTUCKET REAL ESTATE CONTINUED TO POST STRONG TRANSACTIONFIGURES THROUGH MAY, although the sizable lead 2014 has held thus far over 2013narrowed as monthly activity was more similar to the previous year’s results rather than thesizable volume differences witnessed earlier in the year. Through May 31, the 2014 marketsurpassed the same time period in 2013 by 35 percent (#) and 84 percent ($), ahandsome lead but a noticeably smaller one than the 47 percent (#) and 117 (%) year-over-year margin noted at the end of April. Interestingly, the average months on marketsurged during May due to the clearing of older property inventory. Windwalker reviews thisactivity and the current projected marketing time to determine what this past activity couldmean for the future…

X TRANSACTION VOLUME (#) totaled 42 during May, a 17% increase from Aprilfigures and an 8% increase as compared to May2013. Transactions for the period ending May 31,2014 totaled 180, a 35% increase from the sameperiod in 2014 and the highest number oftransactions since 2006 when there were 190.

X DOLLAR VOLUME ($) was $64.6MM during May, a 30% increase fromApril and a 21% jump from May of 2013. Dollarvolume through the first five months of the yeartotaled $284.9MM, the highest dollar volumesince 2007 when it was $285.4MM.

X PROPERTY INVENTORY (#) totaled 332 at the end of May, an increase of 9%from the previous month but a decline of 14%since May of 2013.

I AVERAGE MARKETING TIMEfor properties that sold during May spiked to 19.5months as there were 18 transactions where theproperty had been marketed for longer than oneyear. As of May 31, 2014, the cumulative averagemarketing time was 12 months, a drop of 2months since the same period in 2013.

MAY 2014

May in Focus

windwalkerrealestate.comSales Research Rentals Blog

12Oak Street Nantucket, Massachusetts 02554 508 228 9117

Nantucket Real Estate Dollar & Transaction VolumeHistorical Analysis as of May 31, 2014

Property Sales (#) 39 42 7.7% 133 180 35.3%

Dollar Volume ($) $53,387,274 $64,618,188 21% $154,566,597 $284,935,275 84.3%

Avg. Sale Value ($) $1,368,904 $1,538,528 12.4% $1,162,155 $1,530,933 31.7%

Median Sale Value ($) $862,500 $870,500 0.9% $720,000 $1,135,001 57.6 %

Avg. Sale % of Original List 84% 88% 4.8% 81% 88% 8.6%

Avg. Sale % of Last List 92% 93% 1.1 % 91% 94% 3.3%

Avg. Sale % of Assessed 112% 118% 5.4% 104% 117% 12.5%

Avg. Months on Market 12 19 58.3% 14 12 –14.3 %

May YTD through May 31st

Transaction Highlights

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www.windwalkerrealestate.com Sales Research Rentals Blog

Windwalker Report NANTUCKET REAL ESTATE REVIEW MAY 2014

A REVIEW OF MAY 2014 TRANSACTION ACTIVITYreveals that monthly property sales were similar, in transaction volumeand in price point distribution, to the properties that sold in 2013. This isa divergence from the trend set during the first four months of the yearwhere a striking difference between 2014 and 2013 figures existed dueto the larger concentration of higher price point sales in 2014. Forexample, in April 2014 the average price of properties sold during themonth was $1.5 million compared to $799,000 in April 2013. In May2014, however, property sales more closely approximated the activityseen one year ago (see table). There was a slightly greater percentage ofsales in the $3 million to $5 million segment in 2014, which resulted inan average monthly sale price that was 12 percent higher than May 2013.This is a healthy improvement from one year ago but not quite assignificant a gap as witnessed through the first four months of the year.

A CLOSER LOOK AT THE PROPERTIES THAT TRADEDIN MAY reveals another interesting data point: the average months onmarket jumped to 19.5 months, 7.5 months higher than the cumulativeaverage for the year. The reason for the lengthier average marketing timeis that nearly half of the 42 sold properties were marketed for acumulative time period of longer than 12 months, including twoproperties that were marketed for three years, two that were marketedfor five years, and one that was marketed for nearly eight years prior tosale (see Notable Transaction pg 1). Although certainly not without itsflaws, we can look to the average sale price differential betweenproperties that have been marketed for just one year versus those thathave been marketed longer to gain insight on how the market haschanged. Properties marketed for more than 12 months sold on averagewith a 15 discount from the original list price, while the propertiesmarketed for less than 12 months sold with only a nine percentdiscount. While the value of this back-of-the-envelope metric is highlydependent on the soundness of the original list price, this indicates a sixpercent change in value, a number that is in-line with the change in thevalue of the average home price throughout the past twelve months.

DESPITE THE SURGE IN THE AVERAGE MARKETINGTIME DURING MAY, this monthly metric doesn’t signal much inthe way for the expected marketing time for properties presently listedfor sale. In order to estimate this, Windwalker has taken a look at thecurrent inventory and demand (measured by the trailing 12 monthsales) by price point to project the anticipated months on market. Notsurprisingly, the fastest anticipated absorption is for sub-$2 millionproperties. This is because buyer demand in this price range faroutweighs available inventory. As a result, the projected months onmarket is only three months for properties priced under $1 million andonly six months for the $1 million to $2 million range. Mid-Range($2MM-$5MM) properties are expected to take approximately 14–17months to sell while the higher end of the market may take more thanthree years to trade. Of course, demand and availability in a particularprice point may change at any moment so these projections are simplythat, projections. However, Windwalker will be keeping a close eye onactivity across every price point on a weekly and monthly basis tomonitor developing trends. Check the Windwalker website for weeklycommentary and stay tuned for our next market report!

WINDWALKER REPORT PRODUCED BY:

Jennifer Shalley, Research Director / Broker Associate

12Oak Street Nantucket, Massachusetts 02554 508 228 9117

SINGLE-FAMILY HOME INVENTORY ABSORPTION BY PRICE

AVERAGE MONTHS ON MARKET Historically through May 31

May 2013 May 2014(#) (%) (#) (%)

<$999k 23 59% 22 52%

$1 –$1.99 MM 9 23% 10 24%

$2 –$2.99 MM 4 10% 4 10%

$3 –$3.99 MM 1 3% 2 5%

$4 - $4.99 MM 1 3% 2 5%

$5 - $5.99 MM 0 0% 1 2%

>$6MM 1 3% 1 2%

Avg MOM 12 Months 19.5 Months

TRANSACTIONS BY PRICE POINT

As of May 31, 2014