According to the official statistics regarding the 2021 Real Estate Market in Nantucket, Massachusetts, last year ended with a record-breaking surge in sales. The total sales volume for properties in Nantucket amounted to $2.337 billion for the 825 sales made in 2021.
The number and volume of the sales of second homes and properties there increased by 22-23% compared to those in 2020. The dollar volume for real estate sales hit the highest point in the island's history.
According to experts and owners of real estate agencies, this interest in properties on the quaint island was mainly due to the pandemic, the local wealth increase, the higher mortality rate, and the low-interest rates.
Again due to the stricter travel rules due to the COVID-19 pandemic, the owners of houses in Nantucket were renting less, as they preferred to use their vacation homes permanently during the lockdown.
At the same time, people from around the country have turned to renting residences in Nantucket and the Cape Cod area more than before due to the international travel difficulties as well.
So, expectations are that the available rentals for this year's summer season will be in higher demand than ever this summer.
Also, more people are looking into investing in their own first summer homes, which will provide them with the ease of travel, social distancing, remoteness, and their own space during these difficult times.
If you are interested in buying a second home in Nantucket, then read on for four essential insights and special buying tips from Congdon & Coleman - the leading real estate experts on this island.
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1. Living on an island
Before making such a big step and investing in a house or other property in Nantucket, you should seriously consider whether you are prepared for living or spending time on an island.
Even though Nantucket is only 30 miles south of Cape Cod, it is still an isolated island that can be reached only by plane or ferry. This means that if there are storms or other extreme weather, you may be unable to get there or leave until the situation is normalized.
This remoteness also means that shipments ordered from the mainland will cost more to Nantucket than elsewhere in the USA.
Still, there are local grocery, hardware, and convenience stores and markets where you can buy enough groceries and supplies for your everyday needs.
Also, the permanent population of Nantucket is just over 10,000 people. This means that most locals know each other. This is a good thing because the tight-knit community is dedicated to preserving the island's history, culture, and nature. But for some, this may mean a lack of anonymity or privacy too.
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2. Nantucket's Neighborhoods
While Nantucket is relatively small and has only two zip codes, it still has well-defined areas and neighborhoods. Each of which has its specifics and personality.
This is why you should explore the different neighborhoods and choose the one you will enjoy the most or is closest to your preferences and goals for a second home location.
If your goal is to make the most of your property by renting it out during the shoulder season or being close to the leading restaurants, clubs, and exclusive stores, then downtown Nantucket could be the best option for you.
Madaket and Cisco are more laid-back areas and are perfect for future homeowners who are looking for a place to spend a relaxing holiday.
Young families may want to consider buying a residence in the Brant Point area. It is family-friendly, close to town, and to the children-friendly beaches and venues.
Wauwinet is one of the best destinations for retired people who want to spend time away from the hustle-bustle of the busy town, especially during the peak summer season.
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3. Strict Regulations
The local real estate experts warn future property buyers to be prepared for stringent regulations regarding renovating or constructing homes and other properties in Nantucket.
Due to the local efforts for preserving the historical outlook of the island, which is one of the reasons why it is so unique and such a popular destination, there are very detailed and strict rules about everything you do with the existing or new buildings there.
For example, you will need to comply with rules for the types of shingles you use, the shape of the roof of your house, its height, and many more.
But these regulations and rules help make this island unique and allow for the beaches to remain free to access by all and the local wildlife to stay largely untouched.
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4. Land Bank Tax
Every property owner has to pay a 2% transfer fee on the price of their property to the local Land Bank. This money is the main revenue generator that allows it to buy the lands, preserve the infrastructure and buildings, conserve the wildlife and beaches, and more.
The good news for first-time homeowners who plan to live on the island permanently is that from 2021, they have become exempt from paying this tax for the first $850,000 paid for the property. This means that you can save $17,000 if you find a house or other property on the island, which costs up to $850,000.
