The median sold price in the Hamptons increased 0.5% month over month and 16.3% year over year for March 2022.
The number of listings available for sale declined by 8% between March 1 and April 1, 2022 and the continued reduction in real estate supply appears to be the greatest factor for the decline in contract activity for March 2022 compared to March 2021. Homes are still going into bidding wars when priced right and well positioned in the market.
Contract activity was down in all areas east of the Shinnecock canal, except East Hampton and Sagaponack, a reflection of available inventory going into March this year compared to last.
Given the fifty five percent reduction in total inventory year over year, the fact that only thirteen percent fewer listings in the median price point, between $1.5 – 2.999 million, went under contract in March 2022 compared to March 2021, shows both the effect of the increase in pricing at the low end of the market, when coupled with the supply reduction data for the below $1.5 million price point, as well as the continued strong demand around the Hamptons median price. Going forward, properties on the market for less than $1.5 million will be considered unicorns.
More listings closed for over $5 million in March 2022 year over year and more properties priced over $10 million had contracts signed than the same period last year.
The majority of the decline in market activity was seen in the under $3 million markets, as pricing continues to increase and it becomes increasingly difficult for the people in these price points to make moves within the market.
No area east of the Shinnecock canal had more new listings than in March of 2021. The number of new listings was down across all price points except the $5 million + markets which were flat year over year.
Some have started to speculate on how changes in financial markets will impact Hamptons home prices and sales. Given continued demand, coupled with another decline in inventory, and continued supply chain issues impacting building costs, as well as the cash available in the marketplace, we expect Hamptons home prices to be secure, if not on a continued gradual increase, for the near future.
Adrianna Nava is the Director of Market Intelligence for Covert at Compass and founder of HamptonsMarketData.com