The market slowdown is seeping into the Hamptons: report

Sales in Q2 dropped nearly 13%

TRD New York /
Jul.July 26, 2018 07:00 AM

(Credit: Miller Samuel/Douglas Elliman)

The bubbly may be flowing in the Hamptons this summer, but the property market is flat.

In the second quarter this year, sales in the Hamptons slumped 12.8 percent, according to Douglas Elliman’s latest market report. It marked the first year-over-year decline since 2016. But with 601 sales, the total number remains above average, said Jonathan Miller, CEO of appraisal firm Miller Samuel and the author of the report.

“It is a large drop, but we were running at elevated sales levels last year,” he said. “We did see a reset of sorts in sales.”

At the same time, the median sales price fell — 5.3 percent versus a year earlier — for the first time in six quarters.

Market share expanded below the $1 million price point and above $5 million, creating a soft “middle” range, Miller said. That may be partly due to uncertainty stemming from the federal tax law changes. “The tax law seems to have more impact as you move up in price,” he said. But after a point, it’s not enough of an impact to dissuade buyers.

The median sales price in the luxury segment was up 2 percent year-over-year to $6.3 million, though the number of sales fell to 61 from 69. Buyers on average scored a discount of 9.7 percent in the second quarter of 2018, down from the 15.2 percent in the second quarter of 2017, according to the report.

In a separate report, the Corcoran Group noted the South Fork luxury market saw an uptick. The median price climbed 18 percent. That jump raised the threshold for the high-end — the top 10 percent of sales — to $4.9 million, up from $3.8 million a year ago.

With the reset, the Hamptons market is behaving more like the New York City metro area, Miller said. In the second quarter, Manhattan sales fell 16.6 percent in a drag that’s also brought prices down.


Related Articles

arrow_forward_ios
Robert Futterman charged with DUI in Hamptons car crash

Robert Futterman charged with DUI in Hamptons car crash

Robert Futterman charged with DUI in Hamptons car crash
Developers pulled back on advertising as online traffic and print subscriptions grew (iStock)

Real estate ad dollars vanished as pandemic spread

Real estate ad dollars vanished as pandemic spread
317 West 77th Street (Google Maps, iStock)

Townhouse owners make federal case of cell tower next door

Townhouse owners make federal case of cell tower next door
Fredrik Eklund, Julia Spillman and John Gomes (Getty, iStock)

Threatened by tech, agents turn to app

Threatened by tech, agents turn to app
(iStock)

Mortgage applications to buy homes now higher than a year ago

Mortgage applications to buy homes now higher than a year ago
155 West 11th Street and 1100 Park Avenue (FXFOWLE; Google Maps)

Manhattan luxury market shows tentative signs of activity

Manhattan luxury market shows tentative signs of activity
Clockwise from bottom left: Robert Reffkin of Compass, John Gomes, Scott Rechler of RXR Realty, Rich Barton of Zillow, Gary Keller of Keller Williams and Don Peebles of The Peebles Corporation (Getty)

“America is in crisis:” Real estate leaders address George Floyd protests

“America is in crisis:” Real estate leaders address George Floyd protests
Rihanna has joined in the mayhem that is the Hamptons rental market. She’s reportedly looking to buy, but first wants to rent. (Getty, iStock)

Rihanna is on the hunt for a Hamptons getaway. And she “doesn’t have a budget”

Rihanna is on the hunt for a Hamptons getaway. And she “doesn’t have a budget”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...