Archive for the 'Business' Category

How Important Is Pricing?

Wednesday, October 4th, 2017

QUINTESSENTIAL EAST HAMPTON ESTATE Web # 55470

East Hampton | $10,995,000 | Web# 55470


Those of us in the industry are witness to one of the oddest phenomenons I’ve seen in my 36 years.

We are seeing homes selling for HALF of their original list price. Clearly our markets are not collapsing by any means. We are not in a recession. This is not ’87 or ’08.

So, what is going on?

Is it a handful of sellers “testing the market for their crazy price” or are some brokers over-inflating prices just to have the press write about their newly listed “highest price in America” listing? Are agents desperately pricing to “asking price” vs. “selling price” just to secure the listing? Did one stratospheric sale attempt to set a new high water mark for the entire neighborhood?

Frankly, it’s the perfect storm of all the above.

Most of the steep discounts are at the uber high end. The unfortunate fall out lies with the sellers of homes over $10M who truly would like to sell and have priced to their appraised values only to languish on the market due to an excessive amount of competition. Historically, we have never had so much inventory.

StreetEasy, Trulia and Zillow give false impression on inventory and market status. This is primarily because the East End is not MLS nor is the market monitored by a totally encompassing real estate board.

So, what does this mean?

The bottom line:

For sellers — pricing today is more important than ever, yet even with proper pricing the length of time on the market will be longer than usual due to the scales of supply outweighing that of demand in a big way.

For buyers — it’s a great time to go shopping! You are in a position to get tremendous values.

For sellers and buyers — both benefit from choosing the right professional to assist in navigating current market trends.

To view all reports visit TownAndCountryHamptons.com/Reports.

NEW HOME SALES IN THE U.S. HIT 9 YEAR HIGH

Wednesday, August 24th, 2016

Newly built single family residences across the country jumped 12.4% according to the just released U.S. New Home Sales Report. July 2016 was the best month-to-month increase since October 2007. Year-to-year the July increase was a whopping 31.3%! This puts new home sales levels back to levels equivalent with levels prior to the Great Recession, but below all-time highs reached in 2005.

According to the US Commerce Department, the seasonally adjusted annual rate of 654,000 newly built homes traded hands. In fact, the total amount of new homes sold in the U.S. for the first half of 2016 was up over 12% compared to the same period in 2015. Economists believe historically low interest rates and strong job markets are the main contributing factors.

Additionally, many young home buyers have been sitting on the sidelines for several years and are just now beginning to realize the importance of homeownership.

New homes create jobs. Not only by the construction of the home but there are jobs created with ancillary services such as landscaping, decorating, etc.  All of these jobs markets see significant increases when home sales increase.

Finally, the National Association of Realtors collaborated on the strengthening home sale markets with June’s report on previously owned homes, which hit a 10 year high. Real estate has been the beacon! 

TOWN & COUNTRY Hamptons 2nd Quarter 2016 HOME SALES REPORT

Tuesday, July 19th, 2016

 

The numbers are in… raising eyebrows mind you! 

The second three months of 2016 proved challenging for many of the 12 individual markets monitored by TOWN & COUNTRY.  All three criteria in the analysis showed significant drops: The Number of Home Sales dropped in eight of the 12 hamlets and the Total Homes Sales Volume and Median Home Sales Price both realized declines in nine of the 12 locales.

Southampton Village and East Hampton Village, two prime crown jewels of Hamptons Real Estate, both suffered significant declines in all three criteria. In fact, East Hampton Village’s drop of 53% in Total Homes Sales Volume ($95M to $45M year to year) was the greatest of all markets, with Southampton Village not far behind dropping 48% from $86M to $45M.

Reviewing last year’s TOWN & COUNTRY’S 2nd Quarter Home Sales Report, you will notice 2015 experienced a similar set of declines when compared to 2014. Hopefully, this is not a trend!

Thankfully, the report was not all doom and gloom. Sag Harbor Area (which includes Noyack and North Haven) posted the highest gains in the Number of Home Sales at a 100% leap from 17 in 2015 to 34 in 2016. Further, the Total Homes Sales Volume rose from $23.5M to $58M.

Sag Harbor Village and Shelter Island both showed strong growth in the Number of Home Sales, Total Homes Sales Volume and Median Home Sales Price. Is there a shift in focus to the quaint boutique markets from the estate sections, or is it a function of price?

The darling hamlet of Amagansett experienced an unexpected pull back in activity with 35% fewer homes trading hands — this certainly is not due to a lack of interest, but rather a price sensitivity with Median Home Sales Prices nearing $2M inclusive of both north and south of the highway.

View All Hamptons Markets Combined and you will see plenty of red. In fact only one of the eight price ranges monitored by TOWN & COUNTRY saw gains — an anemic 5% increase in the Number of Home Sales, $500,000 – $999,000 the most popular price category.

“While the 2nd Quarter Home Sales Report proved what I have said about the $10M and up price categories being hit the hardest, I do anticipate the next three months will see a seasonal uptick on the high end. Though, it is the stock market trajectory that dictates Hamptons high end sales. Just another cycle.” states Judi A. Desiderio, President.

To view the full report visit 2nd Quarter Home Sales Report. For all Town & Country Real Estate Market Reports, click here.

 

U.S. HOME SALES STRIKE A 9 YEAR HIGH

Wednesday, June 29th, 2016

Last week the N.A.R., National Association of Realtors, released their report on existing home sales for the month of May. The 1.8% increase to an annual rate of 5.53 million units, was the highest level since February 2007, and sales were up 4.5% from the same period in 2015.

Existing home sales surged 4.1% in the Northeast, 4.6% in the South and 5.4% in the West. The Mid-West was the only natural region to slide… and it fell hard with a loss of 6.5%. Ratios of inventory to demand jumped around this year.

In the Hamptons and North Fork we expect the second quarter report, which will be released mid-July, to be a bit soft. Visit www.TownandCountryHamptons.com/Reports to view all market reports.

Real Estate sales are closely watched by those in the financial world, due to the jobs created with every new home built and the increase in ancillary services whenever a new buyer turns the key to their new home.

From painting to planting, we all enjoy perusing our American Dream. 

Real Estate & Local Business: It’s All Connected

Monday, March 14th, 2016

Judi Desiderio - Hamptons Magazine Business Seminar

Judi Desiderio (far right) joined Hamptons Magazine publisher Debra Halpert, Joey Wolffer of Wolffer Estate Vineyard, Dede Gotthelf Moan of Southampton Inn, Robert Chaloner of Southampton Hospital, and Congressman Lee Zeldin as a speaker at the 8th annual Hamptons Magazine Business Seminar.  

Nearly all businesses are connected in some way to real estate.  The National Association of Home Builders estimates that nearly three jobs are created with each newly constructed home.  Additionally, the National Association of Realtors estimates that one job is created for every two existing home sales.

Since its inception in 1999, the Community Preservation Fund (CPF) that covers the East End towns of Southampton, East Hampton, Riverhead, Shelter Island, and Southold have collected approximately one billion dollars.  The CPF is a 2% tax on nearly all real estate transfers, paid almost exclusively by the buyer.  With this CPF money all East End towns have preserved many sensitive and scenic properties with the objective to protect the environment as well as the beauty of our area.  Preserving the beauty preserves our land values.

With every East End home sold several ancillary services are called in such as decorators, painters, landscapers, and more.  These new homeowners visit our shops and restaurants and contribute to our local economy.

To pay it forward and connect our summer renters more closely with our vibrant community at T&C we provide every tenant with a rental gift bag.  Beyond being a great beach tote, the bag is packed with exclusive invitations as well as coupons and certificates for local wineries, restaurant flyers, information on exercise classes, and other local activities.  We give these out in an effort to get our new neighbors out of the back yard and into the communities.

2016 should be a great year for summer rentals!

HAMPTONS TOP 10 MOST EXPENSIVE SALES OF 2015

Tuesday, February 16th, 2016

2015 closed out the year with a solid performance on the high end. But, 2014 remains THE BEST YEAR for high end real estate sales — shattering all prior ceilings with Barry Rosenstein’s purchase of Andrew Gordon’s estate from his partner, Chris Browne at $147M. The combination of 62 Further Lane, East Hampton at a total price of $97M plus 2 contiguous lots totaling $50M yields the $147M dollar total. That record sale unseated the prior high water mark set in 2007 when Ron Baron bought the deMenil Carpenter property also on Further Lane in East Hampton at $103M.

So while the 2015 top slots don’t come close to those record sales, the 10th spot was held at a respective $23M for 377 Jobs Lane in Bridgehampton.

In keeping with past Top 10 Most Expensive Sales reported by TOWN & COUNTRY, 9 of the 10 sales were waterfront with 7 of the 9 being oceanfront. The hamlet count was fairly consistent with Southampton logging in the most at 4, Bridgehampton with 2, East Hampton with 2, and Montauk with 1.

East Hampton once again takes the crown with 226 Further Lane at $57.3 M.

To view all Top 10 Most Expensive Sales visit TownAndCountryHamptons.com/Reports.

TOWN & COUNTRY HAMPTONS 4th QUARTER 2015 HOME SALES REPORT

Tuesday, January 19th, 2016

This 4th Quarter TOWN & COUNTRY HOME SALES REPORT is one of the most interesting compilation of factors in the nearly three decades I’ve been reporting on market statistics. Tons of moving parts.

First, let’s examine the obvious… the last 3 months of 2015 were not banner months for trades. In fact, 10 of the 12 markets monitored by TOWN & COUNTRY saw declines — some quite significant — with the greatest statistical drop in Amagansett at 46%.

Next reviewing the Total Home Sales Volumes and the bleeding gets worse with 12 of the 12 markets we watch closely experiencing declines. Southampton Village got pummeled with a 67% plummet in Total Home Sales Volume from $222M in 4th Quarter 2014 to $74M in 4th Quarter 2015. But fret not, this is primarily due to four huge sales in 2014 all over $30M, that pushed the Total Home Sales Volume to rare heights.

The beacon of the three criteria monitored by TOWN & COUNTRY is the Median Homes Sales Price. 7 of the 12 markets saw increases, with many being significant increases. The Bridgehampton Market (which includes Water Mill and Sagaponack) shot up 38% from $2.87M in 4th Quarter 2014 to $3.95M in 4th Quarter 2015. Only East Hampton Village topped that Median Homes Sales Price slightly, with $3.995M.

As we predicted, the price range suffering the most was the high end. The $20M+ and up price range sunk 64% from 11 sales in the 4 in the 4th quarter 2015. This is a direct result of the pull back on Wall Street, since that’s the demographic of the buyer at that elite level.

TOWN & COUNTRY monitors specific price ranges within each market. 7 of the 8 saw declines. One surprise is the $5 – $9.9M category which closed 2 more sales, from 25 to 27 home sales, therefore increased 8%.

A glance at All Hamptons Markets Combined and the picture comes into full focus. During the last 3 months of 2015 the Hamptons Home Sales experienced a pull back.

Click HERE for full report & statistics...

FEDS RAISE RATES FOR THE FIRST TIME IN ALMOST 10 YEARS

Friday, December 18th, 2015

It was 2006 prior to the Great Recession, when interest rates rose. In fact, rates have remained at zero for the past 6 years. Federal Chairwoman, Janet Yellen was slow and methodical in pulling the trigger, but to her credit, the vote was unanimous.

To quote Ms. Yellen, “The Fed’s decision today reflects our confidence in the US economy. We believe we have seen substantial improvement in labor market conditions and while things may be uneven across regions of the country, and industrial sectors, we see an economy that is on a path of sustainable improvement.”

The increase was .25%, with indications of further slow and digestible increases. Smart, very smart! The stock market rallied. A quarter of a percent doesn’t rock anyone’s world and yet it sends the loud & clear message that the economy in America is on sound footings. Speaking as one who entered the real estate industry when interest rates were over 18%, money is still cheap.

Real Estate sales nationwide should not be damaged by this move. In fact, logically, it should stimulate activity since it is clear rates will continue to go up in the future.

There’s no better time than the present!

NEW EAST HAMPTON TOWN RENTAL REGISTRY LAW

Thursday, December 17th, 2015

Dear Associates and Homeowners,

We at Town & Country are committed to being your Real Estate Resource. To that end, we hereby inform you of the latest law for rentals of homes and apartments. 

Attached you will find EHT Resolution RES-2015-1337. This is the adopted RENTAL REGISTRY LAW. Any owner who rents out their home is obliged to comply. YOUR ACTION IS REQUIRED.

While there was much pushback and concern over implementation, privacy, legality, and much more, the town decided to move forward. It is our opinion that the law needed to be fully baked prior to adoption and that its current form requires more discussion, planning and modification, but the horse is out of the barn and now the EH Building Department and Code Enforcement will bear the brunt of inadequate planning and execution.

Town & Country Associates are always available to assist our clientele in the navigation of residential and commercial sales & leasing. Feel free to call or stop by one of our 8 offices or if you own a rental property in East Hampton, a visit to Town Hall is your next stop.

Wishing you all a healthy and enjoyable 2016!

TOWN & COUNTRY NORTH FORK 3RD QUARTER 2015 HOME SALES REPORT

Tuesday, October 20th, 2015

TOWN & COUNTRY’S Judi A. Desiderio has been reporting on North Fork Home Sales statistics for over 20 years. This 3rd Quarter Home Sales Report epitomizes why Judi always states “The numbers don’t lie. Individual agents and companies can have record quarters, but individuals don’t make the market.” This is a true eye opener for the amount of RED throughout the report. This is a big surprise since the TOWN & COUNTRY offices are reporting 3rd Quarter sales growth in all markets. In fact, 2 markets more than doubled.

All 4 markets monitored by TOWN & COUNTRY saw dramatic decreases in the Number of Home Sales with Orient (which includes East Marion and Greenport) dropping the most – 47% from 34 sales to 18 year over year.

Southold (which includes New Suffolk and Peconic) realized a 51% plunge in Total Home Sales Volume from $29M to $14.3M.

Jamesport (which includes Aquebogue, Baiting Hollow and South Jamesport) and Orient (which includes East Marion and Greenport) experienced increases in their Median Home Sales Price. Orient by as much as 11%.

Looking at All North Fork Markets Combined and the RED straight across the boards is glaring! All three criteria and all 6 price ranges monitored by TOWN & COUNTRY posted declines by as much as 35.5% in Total Home Sales Volume year over year, with the high end suffering the worst.

Doing a year over year analysis may not give the full and comprehensive picture. To illustrate let’s look at the 3rd Quarter 2013 and we see comparable figures as 2015. Thus the conclusion that 2014 was a banner year would be most correct. 

Click HERE for full report & statistics.