What you should know
- Median sales price in the Hamptons soared 46% in the quarter to just over $ 2 million, according to a report by Douglas Elliman and Miller Samuel
- The surge in the Hamptons came as hundreds of thousands of New Yorkers fled the city during the coronavirus pandemic and searched for homes with more space and fewer neighbors.
- Home sales in the Hamptons remain strong at all levels, brokers say, from less than $ 1 million to more than $ 20 million. Bidding wars are frequent due to increased demand
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NEW YORK – Prices in the Hamptons hit records in the third quarter as more wealthy New Yorkers fled the city to buy beach houses, according to a new report.
The median sales price in the Hamptons soared 46% in the quarter to just over $ 2 million, according to a report by Douglas Elliman and Miller Samuel. The median sale price rose 40% to $ 1.2 million, which is now higher than the Manhattan median sale price of $ 1.1 million.
“I’ve never seen a market like this,” said Gary DePersia, a Corcoran Hamptons broker. “It shows no signs of slowing down.”
The surge in the Hamptons comes as hundreds of thousands of New Yorkers fled the city during the coronavirus pandemic and searched for homes with more space outside of the city. While it’s unclear how many New Yorkers will return to the city and how the flight of the rich will affect New York’s economy in the long run, the pandemic has dramatically redesigned the urban real estate landscape. The Hudson Valley, western Connecticut and the Hamptons saw sales increase in the third quarter, while Manhattan saw a 46% drop in sales.
Jonathan Miller, CEO of Miller Samuel, said an enduring trend of the pandemic will be the emergence of “co-primary residence,” where families spend the same time in the city and in their rural or tourist homes as they can now work. and even attend school remotely.
“It is no longer a second home,” he said. “It is on an equal footing.”
While the Hamptons have long been the high-priced weekend getaway for New York’s wealthy, it has quickly become the year-round bunker for New York’s elite during the coronavirus crisis. Typically, restaurants and stores are empty before Labor Day. But DePersia said restaurants and bars are still full and many families are not sure when or if they will return to the city.
“They want to go back to their lives in Manhattan,” he said. “But nobody knows when that will be. “
Home sales in the Hamptons remain strong at all levels, brokers say, from less than $ 1 million to more than $ 20 million. Miller said 15% of the homes sold in the quarter sold for more than the asking price, likely the result of a bidding war. That total, he said, is about twice the Hamptons’ historical average.
The third quarter of last year saw a record level of inventory as a result of changes in the treatment of state and local taxes, which hurt all areas of real estate in New York. Now, inventory is rapidly shrinking and there are waiting lists for newly built homes. The inventory of luxury homes in the Hamptons fell 43% in the quarter.
The most expensive sale of the quarter was a 3-acre property at 38 Two Mile Hollow Road in East Hampton, with a tennis court, swimming pool and an 8,000-square-foot home, which sold for $ 24 million.
This story first appeared in CNBC.com. click here To see more from CNBC:
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