Held as a bastion of luxury living for the rich and famous, the Hamptons remains a popular choice for those with the necessary funds.
But is appears that Long Island’s beachfront towns are now struggling to attract buyers as listings reached a record high in the third quarter of 2019 according to a new report.
Appraisal firm Miller Samuel Inc. has published a report with Douglas Elliman Real Estate that shows 1,110 homes listed for sale, double the total for any quarter before this year and the highest in 8 years of data.
“The luxury inventory levels are a repeat of what we saw in the dark days of the financial crisis, minus the financial crisis,” Jonathan Miller, president of Miller Samuel told Bloomberg. “It’s just a pile-up of properties in a second-home market that’s dependent on a primary-home market that’s also seen a slowdown.”
Sales have been declining in Manhattan, where many of those who would typically buy in the Hamptons have their primary residence. With values there falling and tax changes adding to the burden, would-be buyers are holding back.
The Hamptons saw sales of 402 homes in the third quarter, down 15% year-over-year.
For the luxury sector, sales were also down 15% while inventory more than doubled year-over-year and accounted for 43% of all homes for sale.
Just 11 homes sold in the $5m and above category.
“They’ll pay fair market value,” Todd Bourgard, who oversees home sales in the Hamptons for Douglas Elliman, told Bloomberg. “They just won’t pay over.”