MarketWatch – The Hamptons Market Adjusts in the First Quarter

The median sold price in the Hamptons increased 12% from $1,962,500 in the first quarter of 2021 to $2,200,000 in the first quarter of 2022 and there have never been so few homes for sale. 

Pricing in the face of changing buyer and seller expectations has been challenging for many agents, evidenced by more than 120 price increases and decreases in the month of March alone. With only 450 listings available for sale as of April 1, 2022, that is quite a bit of adjustment. 

“The biggest problem with getting pricing wrong is that you lose the initial momentum out of the gate,” said Christopher Covert of Compass, who listed and put under contract 35 Potato Road and 543 Daniels Lane in Sagaponack in a short period of time. 

Asking $48,000,000, the listing included two single and separate parcels equating to a magnificent oceanfront compound and was also the highest priced property that came on the market in the first quarter. “In this market,” Covert continued, “it’s all about creating urgency through pricing to maximize results.” 

According to the East End Long Island listing database, in the first quarter of 2022, the number of sold listings decreased by 23%, the number of contracts signed decreased by 44%, and the number of new listings decreased by 34%. Yet there were still 7% more contracts signed than new listings brought on the market for the first quarter of 2022. 

The most expensive sale was the property at 153 Lily Pond Lane in East Hampton, listed by Harald Grant of Sotheby’s International Realty. On the market for $115,000,000 through summer of 2021, the listing went off the market in November, and closed for a 27% discount on February 1, 2022 for $84,500,000.

The listing that sold for the most over the asking price in the first quarter of 2022 was the property at 272 Old Stone Highway in Amagansett listed by Suzanne Rose of The Corcoran Group, which closed for $1,200,000 or 20.6% over the $995,000 asking price.

The median sale was the property at 8 Spinner Lane in East Hampton listed by Christopher Stewart and Jessica Virtullo of Compass. The home was listed for $2,295,000 in September 2021 and closed for a 7.6% discount in January 2022 for $2,120,625. It previously sold in August 2016 for $1,650,000 leading to a 28.5% increase in about four and half years. 

The least expensive sale was 28 Sea Bright Avenue in East Hampton listed by John Brady of Saunders & Associates. The property accepted an offer one week after listing in October of 2021 and closed in January 2022 for 13.5% above the $600,000 asking price for $680,818.

Many real estate agents will say there is “nothing for sale.” There are homes for sale, but there may simply not be many relevant listings for a particular buyer depending on wants and needs. Considering alternative neighborhoods, and even price ranges, can yield surprising results.

Today’s buyers have an expectation of finding value in a listing offering. Today’s sellers expect to receive offers beyond their wildest dreams. It would serve the Hamptons real estate market well if both parties understood that today, the win is getting a clean deal at the market price that will close. 

Adrianna Nava is the founder of Hamptons Market Data and the Director of Market Intelligence for Covert at Compass.