Marketwatch- Healthy Fall Selling Season Predicted
As another great summer comes to a close in the Hamptons, the sales market has been surprisingly robust, according to many realtors. The under $5M market was very strong. New construction continues to be very active. The most prime locations demanded the highest pricing with bidding wars in some cases. There is still a lot of inventory in certain segments, which is good for buyers. As the sales activity progresses, predictions are for a healthy fall selling season.
Judi Desiderio of Town & Country Real Estate says, “The Hamptons summer rental season was quite robust! But many of the renters were committing at the last minute. The sales market heated up slowly. $1M-$3M is very strong! In fact our Mid-Year Home Sales Report showed 88% of all home sales were under $3.5M. If there’s anything left under a million it’s in great demand! Montauk remains a hot spot. Certain segments of the market are experiencing price reductions due to supply outweighing demand and others are holding strong.” Judi observes, “Many times the asking price is far below the cost if one were to buy the land, build the house, add accessory components and landscape – so I anticipate a healthy fall market.”
Christopher Burnside of Brown Harris Stevens says, “The rental market started early for premium properties and new homes. But many homes were rented for monthly or weekly rentals making it difficult to find great full season rentals. Sales activity has actually been surprisingly robust. The prices are definitely down and as new listings pop up the old inventory seems like a bargain. Active price ranges are between $3M-$5M. The high-end buyers above $15M seem to be actively looking. New construction is on fire. Buyers are paying up for quality built new construction. Based on my personal sales, 2017 has proven to be a better year with increased volume.” Christopher predicts, “The fall will be a little slower in the Hamptons with increased inventory.”
Marc Heskell of Saunders & Associates says, “The rental market has been solid, with tenants renting for full season or July-LD. There is also a trend toward shorter-term rentals. The summer sales market was off to a strong start across most price points. The under $1M and under $2M market remains steady and has been the most consistent segment. The higher-end markets north ($3M-$5M) and south ($8M+) were more measured in 2016, but have picked up considerably in the past 6 months. Other very active segments are one-of-a-kind, waterfront and village properties. Amagansett, Sagaponack, Montauk, Bridgehampton, and Sag Harbor are showing increased demand and volume.” Marc expects, “If current trends continue we should see a healthy fall selling season.”
Patricia Petrillo of Sotheby’s International Realty says, “The rental market has been very inconsistent, though we have done several rentals at record high prices, there is still a moderate amount of inventory available. There were a lot of sales closings in May and June. The next spurt of activity generally occurs mid/end of July – LD. Under $5M still sees most of the activity. New construction is alive and well. Prices are currently stable. I think they were off a bit over the winter but the spring surge buoyed and stabilized all price ranges.” Pat expects, “As the summer progresses, so does activity. Looking at houses gets more serious and focused mid-July onward.”
Timothy Davis of The Corcoran Group says, “The rental market started off weak but picked up steam in mid-May. The strong January to April sales market revived in July making it a very strong season. The most prime locations still demand the highest pricing, with bidding wars in some cases. Inventory is lower than past years, but pockets where there is more inventory create competitive pricing good for the purchaser.” Tim believes, “We will continue to see good activity through the summer season which should accelerate into the fall. Wall Street has seen tremendous growth in the markets to the tune of trillions of dollars. Historically, sales in our market follow this kind of Bull run.”
Enzo Morabito of Douglas Elliman Real Estate says, “The rental market has been active and the sales market is hot! We have had multiple homes go into bidding wars and sell over asking in less than a week of listing! West of the Canal is very active! Homes priced $2M-$4M West of the Canal and $3M-$7M East of the Canal are moving very quickly and in some cases ‘flying off the shelves.’ Recently we have seen an uptick in activity of homes up to $10M East of the Canal. New construction continues to be very active.” Enzo remarks, “Historically speaking, the fall is the busiest selling time of the year. I am anticipating that the busy summer will only translate into a busy fall!”
Cynthia Beck of Douglas Elliman Real Estate says, “I had regular renters that locked in very early over the winter in addition to last minute August rentals. Sales have been a little slower this season. The $1M-$4M market has been very active and strong. Sag Harbor is definitely hot and Southampton is very strong. New construction is always in high demand. It’s a great time to be a buyer as motivated sellers have been adjusting prices through the summer. Inventory is moving, new construction is consistently selling.” Cynthia feels, “We will have a strong fall. Buyers who have been watching the market, taking their time shopping through the summer will jump on good deals.”
Mala Sander of The Corcoran Group says, “The rental market is a bit sluggish this year, as people are opting to rent for shorter time frames. Sales are picking up, as people have settled in post-election. East Hampton in the Springs and Northwest Woods are fairly active at the entry-level price points, but waterfront is very hot right now. The ultra-high end is picking up steam, but the hottest segment is in the below $5M range. The second quarter of 2017 has shown ‘upward mobility’ in median and average prices. Inventory is tight right now, as people are deciding to lock in on their home purchases before interest rates go up.” Mala remarks, “It promises to be a very active fall.”
As fall nears, prospective buyers who have enjoyed the Hamptons all summer, typically make the decision to purchase. The Hamptons will always be a fantastic summer retreat with its gorgeous beaches, gourmet restaurants, and charming villages. With supply exceeding demand and prices coming down or holding steady, now is the time to make the Hamptons your dream come true.