Archive for the 'Housing Market' Category

National Homes Sales Are Rocking!

Wednesday, May 17th, 2017

East Hampton | $17,750,000 | IN # 42068

The National Association of Realtors has released the first quarter home sales report for 2017 and the numbers are impressive.

Total existing-home sales rose 1.4% to a seasonally adjusted annual rate of 5.64 million.  This was the highest level since the first quarter of 2007, ten years ago!  Second only to 2005.

First time home buyers are back in the game. The national median home sale price climbed nearly 7% year over year. Reports show the driver, demographically, are millennials. These young adults are some of the oldest age groups to pull the trigger on the American Dream.  Failure to launch, The Great Recession, employment issues, and outrageous prices followed by the housing market crash all contributed. 

Although mortgage rates and prices are on the rise, there seems to be no pull back in sight. This is great news for the overall economy as everyone knows when homes sell, jobs are created. In fact, after the Great Recession, I predicted the housing market would pull the country out of the troth… and it did!

Furthermore, as is the case most times, the East End markets moved conversely to National trends. 

To view the Hampton Home Sales Reports visit www.TownAndCountry.com/Reports

TOWN & COUNTRY HAMPTONS MID YEAR 2016 HOME SALES REPORT

Monday, July 25th, 2016
 
Analyzing the Hamptons Home Sale data for the first six months of 2016 was like being on the Cyclone at Coney Island. The highs are huge — check out Shelter Island — and the lows makes your stomach drop‚ take a look at Southampton Village.

Shelter Island broke some records with 44 sales — a 76% spike from 2015 when only 25 homes sold in the first six months and nearly $50 million changed hands — almost double that of the same period last year.

Sag Harbor Village and Sag Harbor Area (which includes Noyack and North Haven) posted the greatest gains in Median Home Sales Price at 29% and 30% respectively.

Interestingly, the usual crown jewels seem to have lost their luster a bit. Bridgehampton (which includes Water Mill and Sagaponack) saw nearly all red across the board. The Total Home Sales Volume sank 34% — primarily due to the drop in home sales activity $10M and up.

Southampton Village and East Hampton Village, both estate areas, historically blue chips, realized significant pull backs. Southampton Village didn’t have one home sale $10M and up — it’s been many years since we saw that! The Total Home Sales Volume was off by 51% with 27% less sales, all of which recalibrated the Median Home Sales Price to $1.95M. East Hampton Village saw 31% less home sales from 35 in the first six months of 2015 to only 24 in 2016 same period. The Median Home Sales Price droppped 23% from $3.1M to $2.4M year-to-year.

The silver lining for East Hampton Village was the Total Home Sales Volume spike of 36% from $167M to $228M year to year. It must be noted though that this was due to 3 home sales on Lily Pond Lane. Two were part of Scott Bommer’s $110M flip, in addition to 199 Lily Pond Lane oceanfront which closed at $70M — none of which were listed for sale.

“Looking at All Hamptons Markets Combined and you clearly see that while there were some statistically wild peaks and valleys, the prime criteria monitored by TOWN & COUNTRY shows only slight variations.The Number of Home Sales was -6%; the Total Home Sales Volume -8.7%; Median Home Sales Price rose 2%. Not a bad ride afterall,” states Judi A. Desiderio.

View the full Mid-Year 2016 Report all reports visit TownAndCountryHamptons.com/Reports.

Strongest First Quarter Sales in a Decade

Wednesday, April 27th, 2016

The New York State Association of Realtors announced its NYSAR first quarter report 2016 on Real Estate activity in the state, and it contained excellent news!

“Three consecutive months of sales growth fueled the best start to the New York State housing market since 2007. According to NYSAR, the 23,932 closed sales in the first quarter represents a jump of nearly 17 percent from the 2015 first quarter. Additionally, the statewide median sales price grew by nearly 1 percent compared to a year ago.”

U.S. Commerce Department: Northeast housing starts jump more than 60 percent in March: The United States Department of Housing and HUD released its March report on April 19 with more good news.

  • Privately-owned housing starts in March rose 61.3 percent for the Northeast to 121,000, according to data released by the U.S. Commerce Department. February’s total was 75,000.
  • Nationally, housing starts were at a seasonally adjusted annual rate of 1,089,000, an 8.8 percent decrease from the revised February total of 1,194,000.
  • Building permits for the Northeast fell 17.9 percent in March, dropping to 101,000 from 123,000 in February. Nationally, building permits fell 7.7 percent to 1,086,000.

Looks like the market’s heating up: agents better brush up on their handling of multiple offers. The National Association of Realtors put out a field guide on multiple offers with clear information on how to prepare buyers and sellers for a scenario of multiple offers. It summarizes:“Buyers and sellers need to appreciate that in multiple offer situations only one offer will result in a sale, and the other buyers will often be disappointed their offers were not accepted. While little can be done to assuage that disappointment, fair and honest treatment throughout the offer and negotiation process, coupled with prompt, ongoing and open communication, can enhance the chances that all buyers – successful or not – will feel they were treated fairly and honestly.”

Joan Bischoff van Heemskerck, Lic. Associate Broker, Executive Sales Manager North Fork & Shelter Island for Town and Country Real Estate, 2016 President, Hamptons and North Fork Realtors Association (cell 631 948 0234; jbischoff@1townandcountry.com).

TOWN & COUNTRY HAMPTONS 1ST QUARTER 2016 HOME SALES REPORT

Wednesday, April 20th, 2016

The best part about the numbers is they tell it like it is — no individuality, no over inflation, no emotions… strictly the FACTS.

The fact is, the Hamptons 1st Quarter Home Sales Report reflects, frankly, a mixed bag.

In general, the report on the first three months home sales activity shows 10 of the 12 of the individual markets monitored by TOWN & COUNTRY had fewer transfers. East Hampton Village saw a drop of 44% and Bridgehampton (which includes Water Mill and Sagaponack) saw a 39% drop in Number of Home Sales—  these are significant statistical changes.

Bridgehampton (which includes Water Mill and Sagaponack) had quite a pull back, with not only 39% less Home Sales, but 42% less Total Homes Sales Volume, and the final criteria we monitor, Median Home Sales Price, slightly lower by 3%. The $10-$19.99M price range was off by 67% in Bridgehampton (which includes Water Mill and Sagaponack).

On a positive note, Shelter Island spread its wings nicely with a whopping 70% jump in Number of Home Sales, 59% increase in Total Homes Sales Volume and nearly 10% rise in Median Home Sales Price. A shining quarter for the Island.

East Hampton Village statistics deserve close examination. Not only the slide of 44% fewer Number of Home Sales but RED in every price range … except the over $20M, where the 2 sales for the first 3 months were: 101 Lily Pond Lane at $63.8M and 93 Lily Pond Lane for $22M. SAB Capital owner Scott Bommers sold his 3 Lily Pond Lane holdings for a total of $110M — an off-market deal.

Looking at All Hamptons Markets Combined and you see that from a broadstroke the East End Real Estate market held strong, while the stock market was in a bit of a free fall followed by a bounce. The Median Home Sales Price increased a respectable 3.65% to $995,000 while the Numer of Home Sales declined by 10%. 

Thank goodness it’s Spring!

To view the full report visit TownAndCountryHamptons.com/Reports.

 

2015 HOME SALES POISED TO REACH 2007 LEVELS

Wednesday, November 4th, 2015

The National Association of Realtors September report confirmed what Realtors across the United States have been experiencing. Existing home sales climbed to a seasonally adjusted rate of 5.55 million or 4.7% — a huge gain of nearly 8% over 2014!

This spike made up for some of August’s soft spots. We suspect the stock market’s wild ride in August set the stage for the August weakness. However, the September spike was a welcome sign that the home sales in 2015 nationally are on target to hit levels not seen since the crash. The American Dream is alive & well! Yet there are a few rain clouds in the sky…

First time buyers seem to have lost some strength with logging 29% of all sales vs the 32% in August. We will be watching this to see if it is a trend or an anomaly. First time home buyers are significant players as they ear mark future demand.

Let’s seek to the Home Affordability Index at year’s end for more insight.

TOWN & COUNTRY NORTH FORK MID YEAR 2015 HOME SALES REPORT

Wednesday, August 26th, 2015

The first 6 months of 2015 was a strong performance for the North Fork Markets!

Jamesport (which includes Aquebogue, Baiting Hollow and South Jamesport) was the star with all 3 criteria monitored by TOWN & COUNTRY, solidly in the black as well as the price ranges. The Number of Home Sales rose 18% and Total Home Sales Volume was up +19.3% while Median Home Sales Price gained 13.2%.

Mattituck (which includes Laurel and Cutchogue) posted the most number of sales at 73 closings along with the greatest statistical change of nearly 22%. The Median Home Sales Price for the first 6 months rose 13.2% to $505,000 from $446,250. But due to fewer sales over $2 million, year to year, the Total Home Sales Volume dipped 4.5%.

Southold (which includes New Suffolk and Peconic) also experienced heightened activity with all 3 criteria realizing gains; the Number Home Sales +6%; Total Home Sales Volume +17%, and Median Home Sales Price +1%.

Orient (which includes East Marion and Greenport) was the only North Fork market to see a pull back. The Number of Homes Sales for the first 6 months of 2015 dropped 14.3% from 2014 and Total Home Sales Volume was down 13%; the same time period. But the Median Home Sales Price rose a respectable 12.2% from $430,000 to $482,500, year to year.

Looking at All North Fork Markets Combined and you clearly see a solid first 6 months in sales activity. The Number of Home Sales was up 8%, Total Home Sales Volume +2% + Median Home Sales Price +9.4%. The strong increase in Median Home Sales Volume is a trend we are experiencing on the North Fork as more people come to discover the unique beauty.

To view all reports visit TownAndCountryHamptons.com/Reports.

US HOME SALES MARKET CONTINUES ITS ASCEND

Wednesday, July 8th, 2015

Several months back I blogged about how the housing market was going to be the main driver for the US economy, and fortunately for every homeowner, this has come to fruition.

 

NOW LET’S HEAR FROM THE EXPERTS!

 

The National Association of Realtors reported that sales of existing homes in May increased 9.2% from the same month for the prior year and new home sales soared 20% from a year ago to the highest level in 7 years!

 

Last month’s S&P/Case- Shiller Home Sale Price Index Report of March 2015 posted a 5% gain year over year. In Addition the April data released June 30th reported the 20 city index increased 4.9% year over year with a 1% gain month over month.

 

All 20 cities that made up the composite, increased in April before seasonal adjustments, with 12 cities up after said adjustments. “Home prices continue to raise across the country, but the pace is not accelerated”, quoting David M. Blitzer, Managing Director & Chairman of the Index Committee at S&P Dow Jones Indices. S&P/Case-Shiller Composite are a 20 city analysis which is widely referred to for national home prices.

 

First time home buyers made up 32% of all sales in May, a considerable leap from the 27% from the prior year, but still have room to grow back to prior averages. The ability to qualify for mortgages is an important factor in this environment as is rate increases. Consensus is that interest rates will rise in 2015 after being held at near zero rates, but the increases are expected to be at digestible amounts. 

 

All things considered, a continued slow and steady ascend looks to be the trajectory of the US Housing Market for 2015.

 

Judi A. Desiderio, Chief Executive Officer

JD@1TownandCountry.com                

631.324.8080 ext. 221

HOUSING MARKETS—LOCAL & NATIONAL

Monday, December 2nd, 2013

It was exactly a year ago that I wrote a blog called “Housing Will Save US”.
I had been BLOGGING about all the good news relative to housing statistics both locally & nationally for guite some time now. I predicted that a housing boom would help to pull this nation out of it’s Great Recession and that’s exactly what happened. While governments and corporations went on a belt tightening mission by decreasing staff—costs—in order to boost profits, the housing sector was growing from the foundation up. Literally and figuratively.

Locally, our economies have enjoyed a healthy steady growth through all facets of housing and the ancillary services housing supports. From landscapers to framers, all report an uptick in business. While the jobs may be on tighter margins, at least there are jobs to report. Nationally, the same has held true.
 
This trend is poised to continue as the October report on US Building Permits hit the highest since June 2008 with 1.034 million permits issued—a 6.2% increase from September, which was a 5% increase from August. The trend is set. Now the S&P/ Case-Shiller Index on US Home Prices in September realized the highest gains since February 2006, over 7 years ago, with a 13.3% rise year over year in September.
 
We’ve all listened to the experts say the rise in building permits was so great due to multi-family homes, so should not be counted as so great. How silly— what ever form of housing is under demand, that is the void that builders fill. And Professor Shiller cautioned us that the price spike was due to institutional buyers of single family homes… with all very well earned respect sir, 100,000 institutional purchases over the millions sold does not make me gasp!
 
Bottom line…Housing remains the American Dream.
It provides one of the 3 essentials in life—shelter— Home values took the greatest hit since the Great Depression after the collapse of Lehman and now we are all wiser for it.
 
That’s not to say there are not bubbles that form in certain segments of markets with in markets. Whenever you have a market driven by a specific niche set of buyers it’s a fragile market. It has happened before and will happen again, but the scale on which our last correction was denoted  will not be seen in our lifetime.
 
Slow and steady wins the race…. We are just enjoying a little sprint after a long rest!

HOUSING MARKET FULLY RECOVERED

Thursday, May 2nd, 2013

February marked the first month in 7 years — since the crash—that US Home Prices rose at the fastest pace as buyers jumped in before prices and interest rates rise too much.
Standard & Poor’s Case/ Shiller index jumped 9.3%.
This widely recognized report monitors 20 major metropolitan cities – for the second consecutive month ALL 20 cities monitored saw year over year gains.. this hasn’t happened since 2005 which for the East End, was the height of the home sales market with the most number of home sales closed.
The cities that were hit the hardest in this Great Recession, seemed to realize the greatest acceleration, with Phoenix rocking a 23% year over year gain in prices.
The next important conversation needs to be about inventory levels which are at a 10 year low.
We all know what happens when demand increases and inventory levels decrease—yes that’s correct—prices go up!
 
ARE YOU IN?

INVENTORY AT 13 YEAR LOWS

Friday, April 26th, 2013

We all know of the scales of ‘supply & demand’ and how the price of any item is determined by this balance… or imbalance.
Here at Town & Country we have been blogging about how our particular housing market on the Eastern End of Long Island stabilized last year.
Well after stability, when there are fewer homes being listed, there’s only one direction for prices to go… yes that’s correct… UP!
The $75 Million dollar question—named after my favorite new listing on Georgica Pond—is how long and how fast.
The variables are inventory—this will be determined by homeowners who decide, the market’s better, now is the time to sell and buyers who decide I need to jump in now or maybe I will wait to see the long term affect.
Both in their dance to balance shall determine the future of property values.
In my professional opinion, many homeowners who did not wish to sell on the bottom of the market, and of course those who must due to personal circumstances, will list their homes… but that will not flood the market.
More buyers will move forward than sit on the sidelines.
The bottom line, our prices will continue to be stable with certain segments of the market that will experience a healthy pace of appreciation.
Nationally, home inventory level is at the lowest rate since 2000 and sales were up over 10% year over year in the month of March—which was the 22nd consecutive monthly year over year increase according to National Association of Realtors.
Locally, we are enjoying the most brisk buying spree in 6 years.. agents are all busy in all 8 T&C offices.