Last week superior court clerk Mary Adams received six new foreclosure notices filed in a single day. According to Jordan Real Estate principal David Callahan’s tally, there have been 20 actual island foreclosures so far this year.
Last week superior court clerk Mary Adams received six new foreclosure notices filed in a single day. According to Jordan Real Estate principal David Callahan’s tally, there have been 20 actual island foreclosures so far this year. It may seem ironic that while many people with more in the pipeline have struggled and sometimes failed to make their mortgage payments, there is another class of people who can afford more than $20 million for a vacation home without batting an eye.
Such is the case with a Monomoy estate owned by a former Goldman Sach’s executive that is now under agreement for a record-breaking $28 million. The 5.75-acre waterfront estate was originally listed two years ago by Jon Winkelried, a former vice president of Goldman Sachs, who asked $55 million, but recently dropped the asking price to $29-million. He had purchased the place 11 years ago for $7 million.
There are currently 15 Nantucket houses listed between $10 million and $23,950,000, 10 of which front the ocean or harbor, said Atlantic East co-owner Penny Dey. She noted that there have been six sales of homes priced above $10 million within the last 12 months.
“Some of these people who bought over $10 million properties had been long-time Nantucket renters. Some of them obviously recognized that now was an opportune time to buy,” said Dey.
Now under agreement, at $23,950,000 the buyer will enjoy 2.82 acres on Washing Pond Road facing Nantucket Sound and holding guest quarters and a main home with a total of 24 rooms including nine bedrooms and eight baths.
For $23,750,000 you get a home on three-quarters of an acre at 25 Lincoln Avenue on the Cliff containing 19 rooms including nine baths and seven bedrooms. The property also has a guesthouse and a pool.
The lower price of $23,500,000 gives the purchaser a Squam Road oceanfront home on 2.5 acres with a pool and garage with second floor studio. The home features 17 rooms with 11 baths and eight bedrooms.
“Time will tell if these are priced appropriately,” said Dey, explaining that Washing Pond went on the market just over 40 days ago, while Lincoln Avenue has been listed for about 60 days and Squam Road has been for sale for over a year. Dey said the average time on the market for a home selling for more than $10 million is 292 days, about the same as for the entire market range of 590 residential properties including those priced below $1 million.
Who are the people who can plop down mega-millions in cash, meaning they do not require financing to buy?
“I think most of the buyers and sellers were in the financial market,” said Callahan, who in February had a closing on a $19,200,000 three-acre, 22-room home with a pool on Top Gale Lane. He said the house was built by a man in his 40s who had been very successful in the commercial real estate market.
“There are people out there who make hundreds of millions a year. Our market here on Nantucket has always been driven by those people. Some just use [their homes] for the summer. It’s probably not their second home but probably their third or fourth,” said Callahan. “I think most [in the high range] have 11 bedrooms, but when the owners are here they use them all. They might have 20 grandchildren. They have their mini-hotels so all the family can be together. That hasn’t changed; the price has changed.”
Callahan added that right now the homes costing less than $1 million are selling fastest, however there are many small business owners purchasing in the mid-tier of $2,000,000 to $4,000,000 who appreciate the island’s history and want to enjoy its natural resources.
“You always have to remember that what you are buying here is the Nantucket lifestyle,” said Callahan. “That is why people are buying at the low end and the high end. I think the Nantucket lifestyle is unparalleled in the East.”