Marketwatch: The Hamptons

Sales and rentals bounced back in all East End markets in second quarter.

Changing demand, limited inventory, and increasing rates shaped the 2023 market. To understand last year’s impact and what’s ahead, we consulted a few East End real estate experts. We asked them for their insights into the state of the current market and what we have to look forward to this summer. 

“I have personally done more rental deals this year than in 2023 and 2022,” says John Frangeskos, a Licensed Real Estate Salesperson at The Corcoran Group based in Southampton. “The ultra-luxury market has been strong.” The rental market, say Zachary Tunick, Licensed Associated Broker, and Nicole Tunick, Licensed Real Estate Salesperson, both with Douglas Elliman Real Estate in Bridgehampton, “has been a bit indecisive this season.” “We feel that the economic and political uncertainty has been playing a large part in this,” they say. “However, we also feel that once the weather truly turns into a warm spring, it will activate the city-dwellers to get motivated and find their summer rental.” 

Stacee Massoni Blatte, an Associate Real Estate Broker with Sotheby’s International Realty based in Bridgehampton, has observed “a shift in rental dynamics” from the first quarter of the year, she says. She notes a decrease in demand for full-season rentals “with a trend towards one- and two-month rentals.” 

Still, the market is coming back, particularly when it comes to sales. While there is, the Tunicks say, no comparison to 2022, where the market was “still moving at warp-speed,” but 2023, they say, “turned out to be a banner year, in both sales and rentals,” and the second quarter of 2024, despite the much-discussed high interest rates, has been a bounce-back quarter, with sales coming back in all markets. “I anticipate that new listings will continue to stay steady and even perhaps rise throughout the remainder of the second quarter,” adds Massoni Blatte.

Home buyers, too, have been in search of a particular type of home, the Tunicks say. “We are selling more and more homes fully furnished,” they say. “Literally ‘bring-your-toothbrush’ ready.” John Frangeskos agrees. “I am seeing tremendous demand in the sales market for properties that are renovated and move-in ready,” he says. He also notes that clients are looking for homes with “finished lower levels” that include amenities like “recreation rooms, gyms, and home theaters” as well as “expansive backyards and privacy.” 

Massoni Blatte has seen “an increasing focus on sustainability, advanced technology, and comprehensive amenities,” she says. “Since the pandemic, buyers are particularly drawn to properties that offer country club-like amenities, such as tennis courts, pools, spas, and saunas.” 

Clients, the Tunicks say, do not all have the same approach to buying right now as they may have in other years. “Certain clients want to be in for summer and are moving forward,” they say. “They do this with the understanding that the market is not going back to pre-COVID prices, and that if rates (hopefully) do adjust down, the market, which still has historically low inventory, will become more competitive. Other clients seem to be waiting on the sidelines for rates or prices to come down.” 

“I am receiving more calls and interest from both buyers and sellers, and deals are happening,” Frangeskos says of this quarter. “Clients are very data-driven. They want to see comparable sales, review rental forecasts, and remain diligent throughout the rental process.” 

As for when to buy, most agents agree: the time is now. “If you can afford to get in the game, get in the game,” the Tunicks say. “Especially in the unique market of the Hamptons.” Frangeskos seconds that statement. “I always say it’s a great time to buy in the Hamptons,” he adds. “It’s a tremendous long-term play.” 

Overall, the second quarter is showing signs of resilience and recovery, with a noticeable uptick in both rental and sales activities despite external economic factors. Agents emphasize the unique opportunities that are always present in the Hamptons market and the advantages of making a move now to enjoy a place for the summer and beyond.