President’s Day 2019 Market Report – A Summary of 2018 Sales

In 2018, in the category of homes and business properties, there were 44 transfers in 2018 for a total of $51,463,460 with a median price of $995k. Homes with the following characteristics sold at the strongest prices with least time on the market: staged, renovated to current buyer tastes (country-modern), cleared of seller’s personal possessions, priced to comparable properties sold within the prior 12 months of being listed, with ease of access for showings.

By contrast, 2017 had 62 transactions totaling $123,636,299 and a median price of $852,500, which had been a 2.08% increase to the prior year; 2016 annual total sales were $121,106,996.

With the highest sale in 2018 $2,430,000, 2018 total home sales were 58.38% down from 2017.

The sales below include year-to-date 2019 closed transactions as well as vacant land, which has provided a strong alternative to buyers who wanted to create their own design and/or did not find anything on the market for sale in a finished home.

The Town of Shelter Island re-assesses properties annually, using sold data of comparable properties for the prior three years. In contrast to other Towns in New York State, Shelter Island re-assesses properties that have been on the market one full year to the price listed for sale, as opposed to comparable, sold properties. While sellers often do not object to this practice because it supports a listed price, it can create complications for the next owner who needs then dispute the assessment within the first year of ownership, before increases are compounded to the following year. Half of the waterfront homes sold in 2018 had assessments that were higher than the sold price.

The Federal tax reform which was instituted during the latter part of 2017, had an impact on Shelter Island home sales. Many customers wanted to see what a full cycle under the new provisions would do to their taxes and what their net would be, particularly since most homes sold on the island are second homes. The limit on property tax deductions and the 1% “mansion” tax which has a threshold of $1m, were concerns often discussed by customers. On the other hand, interest rates continue to be historically low and many buyers in 2018 who financed their purchases got advantageous rates.

In October 2018, I met Representative Lee Zeldin at Goat Hill on Shelter Island and expressed how the Federal Tax Reform has had a negative effect on the Shelter Island real estate market. Although many people often think of real estate agents as used car salespeople, our small community is driven by real estate. Homeowners, both current listing for sale and a purchaser, employ countless vendors in connection with their property. I had scheduled a meeting with a staff member of Congressman Zeldin’s office mid-December to discuss this subject, however, they called to cancel the afternoon before the meeting.

The job of the Town Board of Shelter Island is in many ways to consider all of the aspects of current and future life for property owners on Shelter Island, and to take action on items of concern to protect not just the environment but also its taxpayers and property values. Proposed septic regulations were a concern raised by customers who had read about it and were under the impression that the new law had been passed. One customer whose family has lived on Shelter Island for generations said “before the Town begins regulating septic laws to the point that the septic and cesspools need to be upgraded before the property has sold, they should look into regulating how pesticides are used by both residential and commercial property owners.” Currently, there are active listings for sale that are estates; it is questionable whether the people who inherited a relative’s home would have the where with all to finance and supervise the upgrading of septic. Another customer who is an attorney recently said, “It is police power at its finest.”

In 2019 so far, there are two high end properties which, when closed, will signal the start of a year that is an improvement over 2018.

• 56 Westmoreland – a 4 bedroom bayfront ranch on 1.1 acres with pool and dock, listed 9/2/14 for $2.695m, sold for $2,43m on 9/27/18 after being in contract for over 2 years;
• 68 Peconic Avenue – a 3 bedroom sound front ranch with pool on .74 acres, listed 11/17/17 for $3.125m, sold for $1.95m on 5/10/18;
• 1 Tarkettle Rd, a 4 bedroom creekfront contemporary on 1.1 acres with vinyl pool, listed 9/14/18 for $2.295m, sold 10/1/18 for $1.98m;
• 14 Peconic Avenue, a 3 bedroom creekfront ranch on .5 acres with pool, listed 8/23/17 for $2.1m, sold for $1.95m on 6/27/18;
• 27 Dinah Rock Rd, a 4 bedroom bay view ranch with pool and cabana on 1.2 acres, listed 7/27/16 for $2.675m, sold on 11/20/18 for $1.84m;
• 142G North Ferry Rd, a 4 bedroom contemporary on 1 acre with guest house, pool and dock with limited egress, listed 10/8/17 for $2.9m, sold 7/10/18 for $2,05m;
• 56 North Cartwright Rd, a 3 bedroom harborfront 1900’s farmhouse on 2.7 acres with dock listed 9/26/18 for $1.995m and sold 12/20/18 for $1.675m;
• 80 Ram Island Drive, a 5 bedroom Colonial harborfront on 1.56 acres with dock, listed 5/25/16 for $3.25m, sold 7/12/18 for $1.811m;
• 16 Westmoreland Drive, a 5 bedroom cape on 1.07 bay front acres with pool, listed 9/20/13 for $2.75m, sold 5/4/18 for $1.715m;
• 54 Westmoreland Drive, a 5 bedroom contemporary on 1.1 acres with pool and partial dock, listed 11/3/14, sold 9/9/18 for $1.575m;
• 4 Crab Creek Rd, a 1983 gut-renovated ranch on .92 acres with pool and cabana, listed 4/13/18 for $1.795m, sold 7/25/18 for $1.725m;
• 39 S Midway Rd, a renovated 1954 contemporary on 1.2 pond front acres, listed 3/22/18 for $1.575m and sold 7/13/18 for $1.510m;
• 33 Country Club Drive, a 4 bedroom renovated ranch with pool on one acre, listed 8/1/18 for $1.495m and sold 10/30/18 for $1.44m;
• 4 Simpson Avenue, a 3 bedroom renovated farmhouse with harbor views on .5 acres, listed 9/30/17 for $1.395m and sold 1/10/18 for $1.3m;
• 4 Winthrop Rd, a 1950’s 6 bedroom traditional with pool on .37 acres, listed 2/15/18 for $1.395m and sold 4/12/18 for $1.2m;
• 1 Sandpiper Rd, a renovated 1967 traditional with 4 bedrooms and pool on 1.1 acres, listed 5/10/17 for $1.4m and sold 2/15/18 for $1.275m;
• 2 Fred’s Lane, a 4 bedroom traditional on one acre with pool, listed 10/14/17 for $1.295m and sold 1/22/18 for $995k;
• 7 Gazon Road, a 3 bedroom traditional on 1.55 creekfront acres with wetlands, listed 3/1/17 for $1.6m and sold 8/10/18 for $1.27m;
• 8 Crescent Way, a 4 bedroom traditional built in 2017 on 1.1 acres with pool, listed 2/6/17 for $1.449m and sold 1/10/19 for $1.25m (2019 sale);
• 148D North Ferry Rd, a 2 bedroom renovated ranch on .8 acres with deeded water access and creek views, listed 3/30/18 for $1.195m, sold 12/20/18 for $1.1m;
• 157 North Ferry Rd, a 5 bedroom 1900’s Victorian creekfront with limited egress, listed 5/13/17 for $1.25m, sold 5/8/18 for $995k;
• 45 Burns Rd, a 3 bedroom 1880 farmhouse with two guest cottages on 1.3 acres, listed 5/5/14 for $1.695m and sold 1/25/18 for $999k;
• 18 Sunshine Rd, a 4 bedroom traditional with pool on .92 acres, listed 9/23/17 for $1.395m, sold 12/6/18 for $995k;
• 2 Margarets Drive, a 4 bedroom contemporary with pool on .98 acres and deeded water access, closed 6/18/18 for $1,055m;
• 3 Gazon Road, a 3 bedroom renovated 1966 ranch with proposed pool and deeded water access, listed 4/4/18 for $1.05m and sold 6/21/18 for $1,05m;
• 12 Osprey Road, a 3 bedroom traditional on 2 acres, listed 6/10/17 for $1.25m and sold 8/20/18 for $980k;
• 11 Terry Drive, a 3 bedroom traditional on .5 acres with vinyl pool and deeded water access, listed 2/13/16 for $1,05m, sold 2/5/18 for $945k;
• 17 Crescent Way, a 3 bedroom contemporary on .87 acres, listed 8/5/17 for $975k, sold 3/28/18 for $940k;
• 20 Terry Drive, a 4 bedroom contemporary on .52 acres with vinyl pool and deeded water access, listed 7/14/16 for $875k, was repriced 1/27/18 to $950k, and sold 6/25/18 for $885k;
• 53 North Midway Rd, a 3 bedroom farmhouse with vinyl pool and cabana on .5 acres, listed 9/11/17 for $1,05m and sold 2/27/18 for $850k;
• 53 North Cartwright Rd, a 4 bedroom farmhouse on .9 acres with wetlands, listed 8/23/18 for $925k, sold 12/11/18 for $900k;
• 20 Congdon Rd, a 1900 farmhouse with carriage house and studio on .71 acres, listed 4/24/18 for $975k and sold 9/20/18 for $855k;
• 45 New York Avenue, a 4 bedroom farmhouse on .37 acres, listed 4/13/17 for $935k, sold 3/9/18 for $849k;
• 48 Dinah Rock Rd, a 3 bedroom contemporary on 1.1 acres with bay view, listed 2/25/17 for $995k, sold 2/5/19 for $825k (2019 sale);
• 32 Country Club Drive, a 3 bedroom contemporary with pool on .93 acres, listed 11/21/7 for $895k, sold 8/28/18 for $775k;
• 44 Country Club Drive, a 4 bedroom Colonial on one acre, listed 10/5/16 for $985k, sold 8/3/18 for $850k;
• 29 West Neck Rd, a commercial property on .54 acres built in 1972, listed 3/17/18 for $795k, sold 1/29/18 for $715k;
• 40 North Ferry Rd, a 5 bedroom traditional on .74 acres in business zone, listed 4/22/17 for $895k, sold 10/3/18 for $684,210;
• 7 Terry Drive, a 1985 ranch with vinyl pool on .63 acres, listed 2/22/18 for $950k, sold 12/17/18 for $700k;
• 15 Great Circle Drive, a 1987 4 bedroom traditional on 1.1 acres, listed 11/3/17 for $850k and sold 1/9/19 for $799k (2019 sale);
• 13 Petticoat La, a 4 bedroom 1977 ranch on .85 acres, listed 10/16/18 for $800k, sold 1/8/19 for $775k (2019 sale);
• 7 Willow Pond Lane, a 2 bedroom 1965 ranch on 1.24 acres with wetlands, listed 10/8/17 for $795k, sold 4/24/18 for $725k;
• 105 South Ferry Rd, a 2 bedroom contemporary on .87 acres with harbor views, listed 10/4/18 for $799k, sold 1/7/19 for $705k (2019 sale);
• 18 Penny’s Path, a 3 bedroom cape modular on .5 acres, listed 7/19/17 for $775k, sold 4/13/18 for $690k;
• 152 North Ferry Rd, a 3 bedroom Colonial with cabana on two acres, bank owned, listed 1/9/18 for $649,900, sold 3/13/18 for $655,250;
• 15 Smith Street, a 3 bedroom 1949 cottage on .85 acres, listed 7/28/17 for $779k, sold 2/21/18 for $640k;
• 10 Terry Drive, a 3 bedroom 1984 ranch on .5 acres, listed 9/13/13 for $575k, removed from the market and re-listed 12/7/18, sold 12/21/18 for $685k;
• 5 Peppermill Lane, a 3 bedroom 2001 ranch on .76 acres, sold 9/17/18 for $685k;
• 3 Crab Creek Rd, a 2 bedroom raised ranch on 1.27 acres, listed 2/6/18 for $675k, sold 4/11/18 for $655k;
• 32 St Marys Rd, a 3 bedroom 1908 bank-owned farmhouse on .71 acres with pool, listed 10/27/18 for $649,900k, sold 2/7/19 for $727k;
• 143 North Ferry Rd, a 4 bedroom 1893 farmhouse on .47 acres, listed 7/4/16 for $795k, sold 3/1/18 for $600k;

Vacant Land Sales for 2018 included:

• 9 Community Drive – sold 1/31/18 for $272k;
• 13 North Midway Rd – 1.5 acres bordering preserve listed 10/31/18, sold 1/28/19 for $472,250k (2019 sale);
• 3 Thompson Rd, .5 acres with deeded beach access, sold 5/4/18 for $285k;
• 29 Sunnyside Ave – 1.07 acres in bank owned sale, listed 5/29/18 for $350k, sold 8/17/18 for $300k;
• 18 St. Mary’s Rd – .5 acres sold 11/13/18 for $300k;
• 12 N Menantic Rd, 11.7 acres bordering preserve, listed 8/12/17 for $2.135m, sold 5/30/18 for $1,575m;
• 2 North Brander Pkwy, 1.62 acres creekfront, listed 8/3/17 for $775k, sold 2/6/18 for 775k;
• 4 Oxford Avenue, .37 acres with winter water views, listed 7/9/17 for $485k, sold 1/8/18 for $400k;
• 17 North Midway Rd, 1.01 acres bordering preserve, listed 5/10/17 for $395k, sold 6/18/18 for $345k;
• 9 Margaret’s Drive, .91 acres with deeded water access, sold 6/14/18 for $398k;
• 47 Lake Drive, 1.2 acres, listed 11/10/16 for $469k, sold 1/31/18 for $445k;
• 8-10 Cobbetts Lane, two 2-acre parcels bordering preserve, listed 8/27/16 for $2.5m, sold 11/30/18 for $1.63m;
• 6 Lord’s Lane, 2.2 acres with bulkhead and dock on creek, listed 4/15/16 for $1.58m, sold 6/25/18 for $1.1m;
• 9 Heritage Drive, .92 acres, listed 12/22/15 for $395k, sold 9/26/18 for $360k;
• 65 Peconic Avenue, 1.19 acres with water views, listed 7/15/14 for $875k, sold 7/6/18 for $670k;
• 62 North Cartwright Rd 2.33 acres with wetlands, listed 4/30/09 for $625k and taken off market, re-listed 11/8/18 for $550k and sold 12/18/18 for $500k.