MarketwatchA Strong Start Predicted for the Hamptons Real Estate Market in 2018
It was a solid year in 2017 for the Hamptons real estate market with an increase in sales over 2016. The $500K-$1M range was very strong while the $3M-$5M range was very active. The Springs, Sag Harbor, and Southampton Village were among the hottest areas. New construction is on the rise and land prices are increasing. Though inventory is high and it’s a buyer’s market right now in the Hamptons, with an uptick in sales and the median price rising, predictions are for a strong start to 2018.
Judi Desiderio of Town & Country Real Estate says, “The 2017 Town & Country Hamptons Home Sales Reports quantifies that the year was a solid performance for the number of sales and total home sales volumes. This year was better than 2016, but paled in comparison to banner years. 90% of the transactions occurred below $3.5M. The Bridgehampton, Water Mill, and Sagaponack markets combined accounted for 26.5% of the total home sales volume. Inventory on the high end is flooded, while the low end is dry! There are some incredible bargains out east!” Judi observes, “In 2018, the new tax code will certainly have an impact on our markets depending on which items of the bill remain and which get dropped or modified.”
Joe Farrell of Farrell Building Company says, “2017 was certainly a good year for Farrell Building Company. In this last quarter, our $4M to $10M business has been outstanding. The $3M to $8M market is the strongest with many of our houses pre-selling before completion, following a long-standing trend for our company. All hamlets are busy with a particular focus in Bridgehampton followed by Amagansett. Prices in the Hamptons are holding. In parallel, land prices are continuing to rise as there is such a small inventory. New construction is on the rise with older homes being demolished to fuel new construction demand.” Joe remarks, “In general, 2018 will yield growth for our residential home sales and the expansion of our commercial, self-storage and multifamily portfolios.”
The Avigdor Team of Douglas Elliman Real Estate says, “We experienced a strong 2017 surpassing our 2016 sales. The lower to middle end of the market from $1M to $6M experienced sales gains. New construction continues to be the strongest segment of the market especially new homes from $2M-$5M. Sag Harbor and Southampton Villages continue to reflect brisk sales. Land inventory is scarce keeping prices of finished product boosted. Bidding wars for the overall market increased especially on lower priced properties as strength in the luxury markets above $6M diminished.” The Avigdor Team thinks, “Things are rather stable here in the Hamptons and we already have some properties in contract as we approach the new year. We are expecting growth for our niche in 2018.”
Geoff Gifkins of Nest Seekers International says, “The market has been steady and our sales have been up over 45% for the same period last year. Inventory is high and we are in a strong buyer’s market. Excitingly, as we close out the year some very notable transactions are taking place. The Village of Southampton has had an aggressive year in sales. The median price across the region is up by 8.1% and we are predicting 2018 will have a similar increase.” Geoff believes, “We will have a compelling final quarter this year and the demand for summer rentals has already started, boosted by the PGA Tour period in June. It will be a great year for the Hamptons real estate market in 2018.”
Deirdre DeVita of Brown Harris Stevens says, “Sales in the Hamptons were good! We have seen an uptick in both the number of sales and total dollar volume as compared with 2016. The Westhampton area saw the largest proportion of sales this past quarter: 32% of all the East End transactions. There is less inventory in the $500K-$1.5M range. Under $2M, prices are headed up, at a slow-but-steady pace. Above $2M, there is still more inventory than can be absorbed in a year. New construction is doing very well.” Deirdre thinks, “We will have a strong start to 2018. The Westerly Hamptons continue to gain recognition among buyers for their proximity to the city, lack of congestion, and relative value, compared to hamlets further east.”
Timothy O’Connor of Halstead Property says, “What began as a slow first and second quarter in 2017 for homes sales in the Hamptons picked up significantly by mid-spring and has been strong since. The total sales for the third quarter 2017 increased over 8% compared to the same time last year with median price rising almost 6%. The momentum is poised to continue through the fourth quarter. The $500K-$1M is very strong. The Springs is probably one of the hottest markets in the Hamptons for 2017, followed by Sag Harbor and Amagansett South/Dunes.” Tim predicts, “Given the continued success of the financial market in 2017, the benefits of these successes should prove very exciting for the Hamptons in 2018 across many price points/areas.”
Angela Boyer-Stump of Sotheby’s International Realty, says, “It has been a great year for sales – my home sales ranged in price from $645K to over $20M. 2017 may end up hitting an all-time high in not only number of overall transactions but in overall average price. The $3M to $5M range has been very active. There have been several bidding situations that resulted in homes selling for over list price. As the stock market continues to improve, we could see a slight uptick in pricing. A lot of the new construction homes have sold.” Angela believes, “There are a lot of people talking about buying next year and if that happens, prices will tick up at the end of 2018.”
As 2018 fast approaches, the Hamptons are positioned to have a very exciting year. With new construction in demand, prices starting to rise, and buyer enthusiasm increasing, the Hamptons real estate market is expected to pick up. The Hamptons will always be a glorious vacation destination with its gorgeous beaches, chic villages, and fantastic restaurants. As 2018 begins, make this the year your Hamptons dream comes true.