Archive for July, 2013

Hamptons Home Sales Market and Interest Rates

Tuesday, July 30th, 2013

Interest rates on home mortgages leapt up an entire percentage in just a few short weeks.
Every business news channel said it will kill the newly emerging home sales market.
As someone who has been a Real Estate Broker for over 30 years, I have to laugh at that.

In fact when I first got my license interest rates were 18-19%.

Many sellers held paper so buyers could afford to buy.
Then closing costs went through the roof when interest rates started coming down, seems banks got a bit spoiled.
From my perspective, interest rates below 10% are favorable.
So current rates of 4.5% are still a bargain.

But people hate change, and in particular – people hate change that comes too quickly.

Fixed mortgage rates of 4.5% ARE a bargain but rising an entire point in just a few weeks was simply unnecessarily hasty.
Combining favorable rates, along with current prices, make for one of the best times in history to buy real estate.
New home sales are up, pending home sales are up, both year over year and
Inventory levels are down, which combined signals one thing for sure…

price will and have been on the rise.

The National Association of Realtors published their June report on pending home sales.

The index dropped 0.4% to 110.9% from May, which was just revised to 111.3.

The important statistic though, is June 2013 is 10.9% higher from June 2012.

Tons of media pointed fingers at interest rates – maybe the too hasty jump a point may have made some take pause, but most are using the future trajectory of interest rates to act now. Maybe the slight 0.4% month over month dip is more relative to inventories at historic lows or possibly a saturation plateau.
So, are you in?

SO WHAT’S UP WITH THIS TRAFFIC

Monday, July 29th, 2013

Every year I hear so many people say, “this year is the worst traffic I’ve ever seen”. To wit I reply, “don’t we say that every year?”.

But this year is vastly different… simply because—it’s true!

I have a theory.

My theory is that over the past few years—since the Great Recession—these rental websites have been coming east like the brown tide.

When consumer spending was a the lowest rates since the Great Depression, our tenant demographics were a mixed bag of international as well as

The usual New Your City crew. Tenants from all four corners were bargain hunting.

It was clear though, spending the entire summer in Manhattan was not an option.

That sentiment remains!

People got real creative when money was tight. We saw 2 families share a home, multiple people splitting off weeks, monthly rentals take the lion’s share vs full season rentals.

And for the first time, we saw a demand for weekly rentals.  

Real Estate Brokers would attempt explain that weekly rentals are non-existent out here.

Then came the brown tide…. The rentals sites took over and weekly rentals are now abound.

What does that mean ?

To the tenant: you pick your week or 2, and hopefully you get nice weather—then it’s over—bye bye!

To the landlord: you turn over your keys to one of your most valuable possessions for a fraction of what it’s worth and pray they take good care of it

And you’re back there every week or 2 to clean, inspect and repair and hope it’s ready for the next rental.

Oh and remember those difficult security deposit conversations—now you have multiples of same.

To brokers: your rental income is reduced, but when you look at the liability involved in these weeklies,

you do the happy dance down Main Street.

Further, rental income has always been a very small portion of your annual income,

yet takes a tremendous toll on time, staff & expense to generate.

To the hamlets of the East End: it’s an accident waiting to happen

To traffic: it’s a nightmare!

You know why?

If these renters only have a week or 2 to get all their summer fun in, then they most certainly

will invite their friends, family and neighbors

To join them ‘for a few days’

And everyone has their own car!!!

 

How we all long for the days when tenants wanted to rent their own place at the beach, with a rare occasional guest.

That’s one family, one set of people, one or 2 cars, some weekends no one comes out and a few weekends maybe a friend or family come here.

If the weather wasn’t great one weekend, so you don’t come out—there’s always next weekend.

Less wear & tear on the homes.

More a sense of responsibility.

More relaxation

AND LESS TRAFFIC!

T&C Annual Summer Party at EH Point Restaurant

Wednesday, July 17th, 2013

Town & Country was pleased to host their Annual Summer Party at East Hampton Point. Our Associates, Staff and their guests enjoyed dinner, cocktails and a beautiful sunset. It was a pleasant evening. Good times had by all!

Thank you to East Hampton Point Restaurant Associates and Staff for providing incredible service and location.