Hamptons resi market swells to another record in the second quarter

Landing an abode in the Hamptons is only getting pricier, and wealthy buyers are rising to the challenge.

The median sale price in the luxury enclave hit $1.9 million in the second quarter — the highest on record since Miller Samuel began collecting data in 2005, according to the appraisal firm’s quarterly report for Douglas Elliman. It’s the second time the metric set a record in the last three quarters. 

“If [the Hamptons] isn’t setting records, it’s flirting with records,” said report author Jonathan Miller. He added that the “continued surge in pricing” is likely the result of a lack of inventory and an increase in sales at the higher end of the market. 

Home sales above $5 million tripled last quarter, up to 72 from 21 in the same period last year. Deals above $1 million accounted for 67 percent of transactions, marking a record market share for the price category. 

“The market since the pandemic has skewed significantly toward the higher end,” Miller said. “Part of that is because prices have risen so much that what was once an $800,000 sale is now $1.1 million.”

The Hamptons was one of few markets in the region to notch three consecutive quarters of annual sales growth. The number of closed transactions rose 74 percent year-over-year, up from 259 to 451. 

Despite the uptick, sales remain below the 10-year average of 522.

The rise in transactions has been fueled by an expansion of inventory in the Hamptons, which hit record lows last year. Listings increased 23 percent last quarter – up from 955 to 1,173 — but was still “well below long term norms,” Miller said. 

In the North Fork, activity at the higher end of the market slowed last quarter, as deals in the area skew toward the $1 million to $2 million range, Miller said. 

The median sale price in the North Fork fell modestly year-over-year, down from $980,000 to $963,000. But the number of transactions expanded by 14 percent last quarter, up from 101 to 115. 

Bidding wars also persisted with roughly 1 in 5 homes selling for above the asking price. 

Listings surged 50 percent year-over-year to 233, the highest inventory count in the North Fork since the second quarter of 2020. But it still didn’t beat the decade average for the period, which stands at 342.