X HIGHEST SALE$9.49 MiLLiOn79 EEL POinT ROAD, DiOniSMonths on Market: 10.7Sale Price to Orig. Price: 64%

I LOWEST SALE$165,000133B OLD S. ROAD (COnDO), MiD‐iSLAnDMonths on Market: 29.4Sale Price to Orig. Price: 92%

NOTABLE SALE10 PROSPECT STREET, TOWnSOLD fOR $900,000, OR 53 PERCEnT Of ThE ORiginAL

ASking PRiCE, AfTER 5 yEARS Of MARkETing TiME.

COnSiSTing Of TWO DWELLingS PRE‐DATing 1952,

ThE PROPERTy quALifiES fOR AnR SuBDiViSiOn.

Windwalker ReportNANTUCKET REAL ESTATE REVIEW

NANTUCKET REAL ESTATE ACTIVITY for the month of May included 39 property transferstotaling $53.3 million, bringing yearly sales activity through May 31, 2013 to a total of 130

transactions through $154 million. Though this cumulative 2013 activity represents a decrease

of 9 percent and 29 percent respectively from the same time period in 2012, May followed on

the heels of April with significantly improved transaction momentum compared to 1Q13. With

June 2013 poised to continue this trend, the Nantucket real estate market may have officially

stepped out of the shadow of the 4Q12 overhang (which arguably created an artificial drag on

1Q13 figures) and into the light of a stronger market, one buoyed by an improving

economy and the promise of increasing mortgage rates.

I TRANSACTION VOLUME (#)during May totaled 39, just one transaction shy

from the same period in 2012.

I DOLLAR VOLUME ($)during May declined 33% from the same

period in 2012 largely as a result of the $16

million transfer of Skinner’s golf course and

surrounding land that took place in May 2012.

I PROPERTY INVENTORY levels totaled 463 as of May 15, 2013, a 38

percent decline from the historical high

(Sept ’09) and a 15% decline from May 2012.

X MEDIAN AND AVERAGEsale prices improved modestly from April 2013

but remain below 2012 levels largely due to

the continued concentration in sub‐$1 million

property sales compared to one year earlier.

MAY 2013

May in Focus

www.windwalkerrealestate.com Sales Research Rentals Blog12Oak Street Nantucket, Massachusetts 02554 508 228 9117

Property Sales (#) 40 39 –2.5 % 143 130 –9.1%

Dollar Volume ($) $80,056,127 $53,387,274 –33.3 % $217,537,650 $153,540,597 –29.4 %

Avg. Sale Value ($) $2,001,403 $1,368,904 –31.6 % $1,521,242 $1,181,081 –22.4 %

Median Sale Value ($) $1,275,000 $862,500 –32.4 % $925,000 $720,000 –22.2 %

Avg. Sale % of Original List 76% 84% 10.5 % 75% 81% 8%

Avg. Sale % of Last List 86% 92% 7 % 88% 91% 3.4 %

Avg. Sale % of Assessed 100% 112% 12 % 97% 105% 8.2 %

Avg. Months on Market 15 12 –20 % 17 15 –11.8 %

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

May YTD through May 31

Transaction Highlights

www.windwalkerrealestate.com Sales Research Rentals Blog

Windwalker Report NANTUCKET REAL ESTATE REVIEW MAY 2013

MAY 2013 NOT ONLY revealed improving transactionmomentum but also improved average marketingtime for Nantucket properties. While the average months on market(MOM) for all properties through May 31, 2013 was 15 months(down from 17 in May 2012), this metric is destined to continuedeclining if demand remains as strong as it has been thus far in2Q13. In May, for instance, 14 of the 34 sales with publiclyavailable transaction data traded in less than six months ofbecoming listed for sale suggesting buyers are making quickerdecisions in the face of low but rising interest rates and reducedinventory levels. These “quick” sales in May brought the averagemarketing time during the month down to 12 months. If buyerdemand remains strong, we should begin to see the MOM metricapproach the 7 to 8 month range witnessed during more healthyreal estate cycles.

IN PARSING THE SALES DATA through May 31, 2013 byprice point, we see a rather interesting phenomenon: there ispresently an inverse relationship between average MOM andproperty value. For property sales under $1 million, for instance,the average MOM was 15.5 months while the average marketingtime for higher end properties in the $5-$10 million range wasonly 8 months. There could be several contributing factors to thistrend… One theory is that the low-end of the market sufferedmore financial distress during the downturn as there wasexceptionally limited buyer demand. As a result, properties in thesub-$1 million price point languished on the market. Now thatthe lower end is beginning to trade, we’ll see a higher averageMOM as older inventory begins to clear. As you move up the valuespectrum, the months on market begins to decline but so do thenumber of transactions. The reduced MOM may not necessarilymean that this price point enjoys a faster marketing time, butrather that so far this year the new to market, turnkey propertiesare in high demand. To determine exactly what the driving forcesare across price points, we’ll have to see how the average MOMtrend plays out as transactions increase through the remainder ofthe year.

AS WE LOOK AHEAD to what the summer season mightmean for the local real estate market all indicators suggest it willbe an active selling season. Through June 26, 2013 there were 81properties with last list prices totaling $141 million underagreement (this may exclude transactions not presently designatedas OTP/P&S in the system and actual sales prices will likely belower than last list price). In reviewing the breakdown of theproperties presently under agreement, we notice that the salestrend appears to be shifting away from lower end sales and intohigher priced properties. Through May 31st, 2013, sub-$1millionproperties represented 68% of all sales activity. Looking forward,however, this segment represents only 48% of the current pipelineas a greater portion of sales are now allocated to properties above$1 million. This is not surprising given the rise in high-end salesand new high-end listings we’ve seen in recent weeks. The shiftinto higher end properties will bode well for boosting dollarvolumes as they have so far trailed 2012 activity.

WINDWALKER REPORT PRODUCED BY:

Jennifer Shalley, Research Director / Broker Associate Peter Kaizer, Research Analyst / Sales Associate

12Oak Street Nantucket, Massachusetts 02554 508 228 9117

SUMMARY DATA

Transactions in OTP and P&S Status by Price Point (Total Sales, % of Sales)As of June 26th, 2013

Transactions and Average MOM by Price PointYear-to-Date thru May 31st, 2013

Average Marketing Time for Nantucket PropertyMonths on Market (MOM) Thru May 31st