Long Island’s East End snagged a much-needed boost in listings last month.
More homes hit the market in the Hamptons and the North Fork in April than in the same month last year, according to Miller Samuel’s report for Douglas Elliman. Contract activity held relatively steady in both markets, though the North Fork logged a larger uptick.
“Inventory itself is expanding, and that’s something that has been sorely missed in the last three years,” report author Jonathan Miller said.
He added that the rise in listings — during what is a typically busy season for the East End — is expected to spur an increase in deals. The Hamptons and the North Fork were among “the highest performing markets in the region” thanks to the inventory growth, which began earlier this year.
Buyers are still making moves on the East End, despite the Federal Reserve’s reluctance to lower interest rates. Mortgage rates started rising again last month as the Fed signaled it would further delay impending cuts, though its shift away from rate hikes is likely sustaining the market.
“With high mortgage rates, many consumers are financing through cash, including equity withdrawals from the stock market, to bypass high rates in the short term,” Miller said.
Though mortgage rates aren’t declining, the Fed’s change of course from last year’s raises is “still giving a narrative to the consumer that they can buy now and refinance later if they trust the U.S. financial system.”
In the Hamptons, new listings rose 41 percent annually, up from 92 to 130. New signed contracts remained flat between the two periods, down from 73 to 72. The slight dip broke the luxury enclave’s four-month streak of year-over-year gains in signed contracts.
On a monthly basis, new signed contracts in the Hamptons fell nearly 21 percent, following three months of double-digit monthly gains. New listings also declined 3 percent after several months of momentum.
“I suspect that the realization that rates weren’t going to continue to fall led to a slowdown,” Miller said.
In the North Fork last month, new listings expanded to 53 from 44, marking a 20 percent annual increase. New signed contracts also increased 19 percent year-over-year, up from 26 to 31.
New signed contracts in the North Fork rose nearly 15 percent month-over-month, notching its third consecutive month of significant growth. New listings increased for a third month in a row, up 18 percent from March.
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