The depressed real estate market resulted in a 23 per cent fall in Martha’s Vineyard Land Bank revenues in 2009, on top of a 33 per cent slide the previous year.

There was a dramatic fall, too, in the amount of land the organization was able to put under conservation protection. It acquired just 7.2 acres of new land this year, compared with its long-term annual average of about 130 acres.

The land bank uses its revenues to purchase and manage land for conservation, preservation and passive recreation. To date it has participated in the purchase of almost 3,000 acres of Island land. It is funded by a two per cent fee levied on most real estate transactions on the Vineyard.

In 2007, the land bank took in almost $11 million. In 2008, the number dropped to around $7.4 million, and in 2009 it dropped again, to some $5.7 million.

But the news is not all bad. The rate of decline in revenues has slowed, and there are tentative signs of some recovery in the real estate market, at least at the lower end.

The number of transactions for properties under $600,000 on which land bank fees were levied actually rose a modest three per cent this year, from 1,084 to 1,115, compared with 2008. And the revenues also increased by two per cent.

However, the market for mid-range properties — those between $600,000 and $1 million — remained weak. The number of transactions was down 20 per cent compared with 2008, to just 69. The resultant revenue declined 19 per cent.

The top end of the market — houses over $1 million — showed the greatest reduction in both numbers and value. There were 73 transactions, a 21 per cent reduction, and revenues fell 29 per cent.

Nonetheless, these top end sales still made up the bulk of the year’s revenue for the land bank — almost $3.5 million.

Overall, combining all market sectors, the number of transactions was flat in 2009 compared with 2008, but revenues were down 23 per cent.

“The most important figure is the last one,” said the land bank’s executive director, James Lengyel, “because there you see a disconnect between the volume of transactions and revenue.

“Between 2007 and 2008, both dropped, although revenue dropped faster than transactions. But between 2008 and 2009, revenue continued to drop, but transaction numbers are flat.

“When volume is flat and revenue drops, it means prices have dropped.”

That did not mean prices had dropped by the full 23 per cent by which land bank revenues had fallen, however. Part of it was due to the change in the profile of property sales.

“The propulsion behind land bank revenues is always the upper and middle categories. So when these sectors slow, it very quickly shows up in the land bank treasury,” he said.

“Part of what happens is that when prices drop, the rational thing that landowners do is they don’t consider becoming sellers, because they know prices will rise again. Unless there is something pressing, they don’t sell.”

And the figures seem to indicate property owners in the upper and middle categories are not feeling the pressure to sell.

Which is why, after having put 82.2 acres and 134.3 acres into conservation in 2007 and 2008 respectively, this year the number was just 7.2 acres.

“We’ve seen this before,” Mr. Lengyel said. “We’ve seen times when we have to slow down on acquisitions, and times when landowners withhold. And when the market rebounds, people are willing to sell again.”

As for what the numbers portend for the real estate market, Mr. Lengyel was unsure, although the signs of recovery in the lower end were encouraging.

What they portend for the land bank budget, though, is clearer: a flat year.

“The same philosophy will guide us next year as it did this year: slow and steady. The land bank is not going to be in a position to undertake new priorities just yet.

“We’re not taking on acquisitions, but we still have creditors to pay because we have borrowed to purchase properties. So we’re still paying that off. And we’re continuing to do the long-range planning that will position us to act in two or three years from now.”