House Hunting in the Hamptons?

Key Highlights

• Hamptons market continues booming
• Supply now keeping up with demand

Hamptons Real Estate Market Continues to Soar

The latest Douglas Elliman quarterly report on the Hamptons housing market reflects a “…massive year-over-year surge…” for Q1 2021, according to Jonathan Miller, president and CEO of appraiser Miller Samuel and author of this report.

Miller said, “All segments of the (Hamptons) market are strong.”  This latest report indicated that total inventory available for sale in Q1 2021 plummeted nearly -41% compared to last year during this same time frame.

Hamptons An Outlier in Terms of Supply

Every other affluent suburb and vacation destination (think Greenwich CT and Palm Beach FL) has seen inventories of luxury property seemingly evaporate due to wealthy people fleeing urban areas during the COVID pandemic.

Supply within the luxury sector of the Hamptons is, however, holding its head above water.  Miller said, “Hamptons listing inventory in the luxury sector is +49.9% y/y while overall inventory for the Greenwich luxury market is down -36.8%.”  The Palm Beach lux sector supply dropped -59.4% y/y.

Reasons for Hamptons Supply

According to Douglas Elliman broker Michaela Keszler, older homeowners are looking to take advantage of a great sellers’ market.  “It’s a generational thing,” said Keszler.  “They’ve had their houses for a long time and they want to downsize or move somewhere else.”

Some existing buyers are looking to trade up.  Deborah Srb, broker with Sotheby’s International Realty, said some of her clientssimply want more space for their growing and extended families.  These existing buyers are selling lux homes priced between $1M and $3.5M and simply want “more” of everything – space and quality – and are willing to pay for more of everything.

Srb also has clients who are looking to “size down” from homes that “…are somewhat at the end of their life span in that they haven’t been renovated.”   These owners/potential sellers, many being empty nesters, who can get a good price for their family house while “…finance and tech wealth is coming in and buying up these properties.”

More Supply = More Demand

Prospective Hamptons’ buyers (and agents) must be on their toes. Frank Bodenchak, a broker with Sotheby’s International Realty, said, “Anything under $7.5M (is) gone immediately.

Keszler, the Elliman broker, said the “sweet spot” is really any property up to $10M.

Srb agreed.  “…when a new home comes on the market and it seems like it’s priced really well, it doesn’t last more than a week.”  Srb continued saying, “I’ve been doing this for 28 years, and I’m stunned by the breadth (of demand) from young to old.  It’s almost like they’re discovering the Hamptons for the first time.”

Thanks to Douglas Elliman, Miller Samuel and Bloomberg.

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