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Hamptons Real Estate Update: Oceanfront Edition

February 2022 was the first month since August 2021 that, marketwide, the Hamptons saw more new listings come on the market than went under contract. The difference is only 10 listings yet, speculation will begin about Hamptons home prices stabilizing and whether we are nearing a turn in the market. When real estate sales will begin to tip in the favor of buyers in any significant way remains to be seen. The Hamptons real estate market has changed – but, for now, it is still in the favor of sellers.

An important differentiator to the Hamptons real estate market compared to national markets is that though our supply levels declined gradually during 2021, the most notable declines occurred leading into 2022. 

The effects of the dramatic loss of market supply will take a little while to be fully felt and responded to, but we are already seeing the results in whisper reports of properties that traded in the second quarter of 2021 for around $6,000,000 reselling last month for over $9,000,000 – with no changes to the property made. Prices are still on the rise despite the slowdown in sales. 

The Hamptons off-market is also very active, as is the Hamptons luxury sector in general, including Oceanfront. More properties priced over $5,000,000 went under contract in February 2022 than in February 2021. In the last 6 months, eight properties on the ocean east of the Shinnecock canal have sold on the market with a handful more trading quietly behind the scenes. Two are currently under contract and there are fifteen active on the market, with more whisper deals circulating in the off-market.

Photo: Corcoran

The entrypoint for Hamptons oceanfront is 195 Marine Boulevard in Amagansett listed with Arlene Reckson of the Corcoran Group for $12,500,000. The “creme of the crop” would be Mylestone at Meadow Lane in Southampton listed with Bespoke Real Estate for $175,000,000. East Hampton oceanfront requires an investment of $50,000,000 or more, while Southampton’s entrypoint is $40,000,000 on Meadow Lane. 

Photo: Bespoke

New to the market and moderately priced is 35 Potato Road in Sagaponack listed by The Christopher Covert Team of Compass for $32,000,000. The property is “sited on nearly 2 oceanfront acres and above the flood zone… this type of opportunity comes along only once in a long while. Featuring nearly 250′ of direct ocean frontage with unparalleled views from every level,” according to Covert’s Instagram account.

Photo: Compass

It looks likely that dated, but well maintained longtime family homes are the next trend in supply to enter the marketplace. These homes will be priced less than the most recent new construction or newly renovated homes, but will offer plenty of equity opportunity, as well as the ability to finish or recreate the spaces to personal taste and lifestyle requirements. 

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