The real estate market in the Hamptons is cooling off after a record-breaking number of home sales in 2014. Sales and median prices of Hamptons real estate dropped this year from where they were in 2014, according to a recent report done by Douglas Elliman Real Estate.
The report, which compared the second quarter of 2015 to the that of 2014’s, found that the median sales price for a Hamptons home is down 6.5 percent to $849,000 and the number of homes sold dipped 15.7 percent to 590.
Business was booming out East in 2014, when the number of sales hit 700 for the first time since 2005, before the housing crisis. The surge pushed more owners to put their homes on the market this year. There were 1,694 listings at the end of June, a 2.9 percent increase from last year and higher than the six-year quarterly average of 1,571. With more options, potential buyers can mull over deals longer, something that may have slowed the market.
“That demand has mostly been absorbed, so what we have now is the prices showing mixed trends, but sales are down,” Jonathan Miller, who authored the report, said in an interview with CNBC.com. “There isn’t the same sense of urgency by buyers that there was a year ago, but there is still above-average activity occurring. It’s just not at the breakneck pace it was last year.”
Dottie Herman, the CEO of Douglas Elliman, told CNBC.com that though sales have slowed, they are still healthy.
So, don’t expect Super Saturday style bargains in the summer hideaway of the rich and the famous. The median price tag of the top 10 percent of all deals in the luxury market rose 1.8 percent to $5.29 million, and the average sales price of a condo went up 38 percent to $799,000. Miller believes this shows condos are becoming a trendier option for consumers.