After a sluggish winter, the East End’s residential market is showing signs of life.
New signed contracts were up month over month in the Hamptons and the North Fork, according to a February market report by Miller Samuel for Douglas Elliman. Last month’s increase in contract activity marked the second in a row for the Hamptons.
The gains in both markets far surpass the usual seasonal shift in activity, according to report author Jonathan Miller.
“We’re just starting to see the market reverse course and begin to expand,” Miller said, adding that trends in the East End market are on pace with those in the larger New York region and across the country.
Despite the monthly gains, new signed contracts in the East End were down from last year due to higher mortgage rates and a “decimated” inventory. In both the Hamptons and North Fork, last month’s contract activity was only about half that of their levels in 2022.
New signed contracts dropped in the Hamptons from 113 last February to 55, while contracts in the North Fork declined from 36 to 17.
“What we’re seeing is a combination of the rise in mortgage rates slowing down demand and an equally important inventory collapse,” Miller said.
The two markets split in new listings. The North Fork saw an uptick in new listings month-over-month, while new listings in the Hamptons continue to decline. Inventory in the Hamptons remains at a near record low. However, both markets reported an annual decrease in new listings.
In the Hamptons, new listings dropped 28 percent year over year, from 109 to 78. The only recorded increases in new listings occurred for single family homes in the $4 million to $4.9 million range and the $10 million to $19.9 million range.
In the North Fork, new listings dipped from 42 to 28, about a 35 percent decrease. Only single family homes in the $2 million to $3.9 million price range reported an increase from three new listings in Feb. 2022 to nine last month.
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