The Hamptons Real Estate Market Is More Robust Than You Might Expect
[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”]
The Hamptons are experiencing a concentrated version of what is happening in the wider real estate picture, and New York in particular:
“It follows the New York trends, ” Mr. Shapiro continued. “People are willing to pay what they want without hesitating. By seeing those homes rising again, they have the confidence to say ‘What’s going on with my summer home?’”
Historically low interest rates have also played a role in the Hamptons upsurge.
“I have noticed more and more buyers taking advantage of attractive financing,” said Jane Kratz, a Hamptons Real Estate lawyer. “I suspect the concern is that this is a once-in-a-lifetime opportunity to borrow money at such low rates—I am seeing this at every price point.”
While it’s often the upper bracket in super-wealthy areas like the Hamptons that signal these sorts of economic upswings, it’s the mid-range that has really seen the boom this time around.
The $2 million-$5 million band—the middle belt for areas like the Hamptons—has seen a lot of activity, seemingly because people on the lower end of the market are copying the more well-off buyers who had historically been overstimulating the local economy.
“Activity in the lower end is busy,” added Paul Brennan of Douglas Elliman. “There’s a lot of pent-up money. When the high end is hot, it trickles down to the rest of the market.”
People who used to rent are now seeing the advantage of exploiting their assets in the area’s unique rental market.
Ms. Comnas says, “That trend started maybe due to the economy, where people didn’t used to have to rent their houses, but now it’s [/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][something] that has continued to grow. There’s a lot of rental inventory on the market.”
The question of inventory is something that separates the Manhattan scene from the Hamptons area. Whereas New York City is experiencing a drought in terms of available housing, the Hamptons can afford to be more relaxed.
“In Manhattan, under normal circumstances, properties would sell within a month or so,” said Ms. Comnas. “Out here, a normal sale would probably take about six months. People don’t need to be here because their child is starting school and their husband has a new job, they’re buying these houses to use in their leisure time.”
So the debate is no longer whether or not to get a Hamptons place—it’s where in the Hamptons you’ll be buying. With Montauk long touted as the hot new spot to buy, it’s possible that another area is ready to steal the enclave’s crown.
While most brokers agree that the surfing haven’s fortunes have been on the rise for the past few years, more and more are now signaling that the North Fork, the Hampton’s quieter, less showy sibling, is ready to come into its own.
“Buyers are going to North Fork, as it’s extremely chill,” said Sheri Winter Clarry, a broker with the Corcoran Group. “It’s wine country meets the beach, but you’re only a short distance from Manhattan.”
The area has been thriving due to its low-key appeal and affordability, as compared with the South Fork’s super-inflated prices. That may all soon change, however, with larger properties suddenly moving off the market on the north shore.
At 14,000 square feet, with a 37-acre estate and two swimming pools, the Willowkeep Farm Estate in Mattituck was the definition of a trophy house. The amenity-heavy private realm was listed on May 26 and is now in contract for $4.8 million. A similar property over Peconic Bay could go for twice as much. Buyers are coming in from all over the world to take advantage, and not just from the usual areas, with customers from places like Argentina leading the frontier.
The houses they’ve been buying have also developed new patterns. The modern barn style has been an extremely popular choice this summer. With a sleek, minimalist design, the barns have started to threaten the foothold of single traditionals, constructed by Hamptons stalwarts like Farrell’s, whose houses have been known to be sold the moment ground is broken.
The turn-key home has also been hotter than ever, with developers creating houses that are complete down to every last detail, including towels, sheets and dishes. The area has always been at the forefront of “prêt-à-vivre” real estate, where taking the hassle out of decorating a second home can be a huge draw for more affluent clients, and it looks like the trend will only continue into future as the market continues to heat up.
But we shouldn’t forget that buying houses isn’t the only reason for visiting the Hamptons at this time of year, as Ms. Comnas reminded us.
“The point is to come out and enjoy the summer.”[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
