Marketwatch: The Hamptons

According to data from Housing Notes — compiled by Jonathan Miller, president and CEO of the real estate appraisal firm Miller Samuel — the median home price surged 18.3% year over year to $2,412,500 in the first quarter, even as total sales fell sharply. 

Inventory declined 10.4% annually and now sits roughly 20% below the decade average for first quarters, helping push the market share of $5 million-plus sales to a record 21.2%. In comparison, sub-$1 million deals dropped to a historic low of 13%.

“We did see sales drop 31% year over year, and I believe that’s because of the extreme winter, Miller said. 

Buyers who waited out the snow are likely going to strike now, he added. “I suspect we’re going to see a disproportionate uptick in the second quarter that’s going to make it look like the second quarter was unusually robust,” Miller said.

Agents on the ground echo that sentiment, pointing to weather, not demand, as the primary culprit. “We called it ‘The Winter of White,’ because, since I was a little girl, I haven’t seen that much snowfall,” said Judi Desiderio, managing partner of the Hamptons and North Fork for William Raveis. “That is a hindrance to everything. People can’t have open houses or drive out East.” 

Coming out of winter, things are picking back up. “In the last six weeks, we’ve seen a big surge of people coming to open houses and making offers,” Desiderio said. “Then we know that two or three months down the road, we’ll have closings.”

Standout Listings
Even against the backdrop of a weather-disrupted quarter, the Hamptons has already seen a slate of outsized deals and listings.

In Water Mill, 200 Rose Hill Road — an imposing 19,000-square-foot estate with 10 bedrooms and 12 baths set on 2.29 acres overlooking a 65-acre agricultural reserve — hit the market for $32 million.

“It’s special because it’s so different than anything else that’s out there,” said Vincent Horcasitas, a broker with Saunders & Associates, whose team has the listing. “When you look at the competition at this price point, it’s more like 10,000 square feet, so it trumps the competition.”

Meanwhile, in Southampton, a property at 150 Edge of Woods is already in contract for $12 million. “What made that stand out was the land and what it allowed you to do with it,” said its listing agent, Thomas Cavallo of Douglas Elliman. “It was a fully clearable property with the ability to create a true compound — main house, pool, tennis, cabana,” he said. “It’s really a full resort-style setup all while being in close proximity to the Village.”

That kind of flexibility continues to command a premium, even in a more measured market, he said. Cavallo added that he was surprised this winter by how well prices held up despite fewer deals. “The serious buyers were out there; they just weren’t chasing everything,” he said. “Turnkey homes and well-located properties moved, while anything overpriced or needing too much work sat.” “What surprised me most was how strong pricing held despite fewer deals,” Cavallo said of the rough winter. “It’s a market where quality is still getting rewarded, but buyers are much more disciplined.”

Hamptons Hotspots
Even in a market defined by high prices and tight inventory, not all Hamptons enclaves are moving in lockstep. Some are surging ahead, buoyed by lifestyle appeal, while others remain relative value plays — for now, at least.

“Sag Harbor is super hot. People want to be there,” Horcasitas said. “It’s probably the most active town in the wintertime, with more restaurants that are open and things going on.” 

The broker’s observation is clear in Sag Harbor’s first quarter numbers, according to Housing Notes, with 32 sales driving the median price up 50.6% to $3.4 million. Still, that was a far cry from Sagaponack, where four sales yielded a median price of a whopping $15.75 million.

But beyond the marquee names, agents point to quieter pockets gaining traction. 

“Wainscott is undervalued,” Horcasitas noted. “It’s close to everything. Close to the water,” he said. “South of the highway, there are some great properties that are sitting that aren’t getting the action they should be.”

North Sea, tiny hamlet of Southampton, “has a lot of upside,” Cavallo added.  “It’s incredibly central and offers a mix of beach communities,” he said, “along with larger properties and newer construction at more approachable price points.”

Closing The Deal
With inventory still tight and demand highly selective, preparation and timing are proving critical on both sides of the deal as the Hamptons market heads into its busy season.

For sellers, presentation can make or break a sale. “Take the time, energy and money to maximize not only the first view, but also when you walk inside, fresh paint, dress up your house, get rid of clutter,” Desiderio advised. “Things like that make it easier for the buyer to envision their style in the house,” she said. “Give them a clean palette.” 

Cavallo echoed that emphasis on turnkey appeal, noting that, “for sellers, pricing and presentation matter more than ever,” he said. “If a buyer walks in and feels like they don’t have to do anything, that’s where you see strong numbers.”

Buyers, meanwhile, are navigating a competitive landscape. “It’s very slim pickings. You have to really know what you’re looking for,” Desiderio said. “There are deals around, but you have to be able to get your hands dirty or hire someone who will.” 

Cavallo added that decisiveness is key: “For buyers, know what you want and be ready to act when it comes up,” he said. “Those don’t last.”

The numbers tell one story, but the season ahead may tell another. Demand is real, buyers are ready, and the Hamptons rewards those who move with conviction.