Home prices in the Hamptons, a popular resort town located at the end of Long Island and favored by those from Manhattan, reached a record high in the fourth quarter. For the first time in ten quarters, home sales recorded a year-over-year increase, coinciding with a slide in mortgage rates.
New data from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate shows homes in the beach town were sold at a median of $1.85 million in the fourth quarter. This is up 45% from the fourth quarter of 2022 and more than double 2019 prices. Purchases for last quarter rose 8.8% to 273.
Bloomberg noted, "Competition is heating up again in the Hamptons after an extended lull — which in itself followed a Covid-era buying frenzy that had picked the market clean."
The return of buying activity in the Hamptons comes after the 30-year fixed mortgage topped 7.79% in late October and fell 1.19% to 6.6% by late December.
Todd Bourgard, Elliman's chief executive officer for Long Island, told Bloomberg: "When we have a house that is priced properly, we are finding that we have far more buyers than we do sellers."
Bourgard emphasized: "We're seeing multiple bidding situations."
Data showed that 25% of the deals last quarter were part of bidding wars, up from 19% share in the third quarter and a year earlier.
With increased buying activity, inventory levels are also rising, up 15% to 1,026 properties in the fourth quarter compared with a year ago.
Within the high-end segment - the top 10% of transactions, with properties over $7.3% million - the median sale price soared by 87% compared to the previous year, reaching $12.6 million. Also, inventory is skyrocketing, up 51% to 554 properties.
