Archive for the 'market conditions' Category

Hamptons Real Estate Q2 Market Report: The High End Recovers

Tuesday, July 18th, 2017

The 2nd Quarter of 2017 was clearly the 3 months that the high end made a recovery rebound. The blue chips of Southampton Village, East Hampton Village and Bridgehampton (which includes Water Mill and Sagaponack) all came roaring back from the tepid 2016.

All Hamptons Markets Combined for the 2nd Quarter of 2017 saw 4 closings over $20M, where there were none in 2016 same period. Two from Southampton:

 328 Gin Lane – $31,000,000

 1510 Meadow Lane – $24,600,000

One from East Hampton and Water Mill each:

 32 Middle Lane, East Hampton – $25,000,000

 1285 Flying Point Road, Water Mill – $20,500,000

In the $10-$19,99M price range 10 homes sold in 2017 compared to 4 in 2016, a 150% jump. And 6 of the 10 closed were from the Bridgehampton, Water Mill and Sagaponack region.

Seven of the 12 markets monitored by TOWN & COUNTRY saw increases in all 3 criteria – Number of Home Sales, Total Home Sales Volume and Median Home Sales Price.

The 2nd Quarter wasn’t all rosy for certain markets. Two popular niche markets, Montauk and Shelter Island,each experienced significant pull back in all 3 criteria. In fact, statistically, the greatest declines of all of the 12 hamlets both experienced solid red across the board.

In all, the 2nd Quarter of 2017 shows just how unique each of our Hamptons markets are and how they each move independent of one another.

Water Mill | $6,495,000 | IN # 15218


To view all reports visit TownAndCountryHamptons.com/Reports

North Fork Q2 Market Report: T&C Real Estate Business Up 20%

Tuesday, July 18th, 2017

The second 3 months of 2017 were not so kind to North Fork home sales.

At our Mattituck and Southold Town & Country Real Estate offices business was up approximately 20%.

Obviously, that was not reflective of the overall market conditions. This is why statistics are so important.

Jamesport (which includes Aquebogue, Baiting Hollow and South Jamesport) was hit the hardest with 40% and 42% declines in Number of Home Sales and Total Home Sales Volume, yet the Median Home Sales Price rose a healthy 6.8%.

The greatest Number of Home Sales occurred in the Southold (which includes New Suffolk and Peconic) market with 32 closings… just 3 less than the 2nd Quarter 2016. The Total Home Sales Volume and Median Home Sales Price price rose 2.3 and 2.7% respectively.

Mattituck (which includes Laurel and Cutchogue) experienced a big bump up in Median Home Sales Price from $414,985 to $757,000 — an 82.4% jump. The only sale over $3.5M was 397 Marratooka Road, Mattituck which sold for $4,500,000.

Looking at All North Fork Markets Combined and you see a nearly 25% drop in Number of Home Sales yet the Median Home Sales Price rose 18%. This tells us inventory is way low and demand high which results in price increases.

Southold | $2,200,000 | IN# 28807

Southold | $2,200,000 | IN# 28807


 

To view all reports visit TownAndCountryHamptons.com/Reports

Town & Country Hamptons 1st Quarter 2017 Home Sales Report

Tuesday, April 18th, 2017

WARNING: Before you delve deep into the extraordinary amount of negative red figures, keep in mind, all Real Estate Reports are somewhat a look in the rearview mirror. Recorded data that is analyzed reflects closings that went into contract an average of 60 days prior.

That said, Q1 home sales clearly show a tremendous pull back on the high end. TOWN & COUNTRY monitors eight separate price ranges in 12 different markets. Across the board, none of the hamlets experienced an increase in the $10m-19.99m or $20m and up price ranges. In All Hamptons Markets Combined, these two price categories declined by -83% and -67%, respectively.

The only beacon in this report would be Southampton Village, where the Total Home Sales Volume jumped a whopping +93.6%, while the Median Home Sales Price shot up 87.5% to $3.75m in 2017 from $2m in 2016. In fact, the only sale in the $20m and up category was 7 Old Town Road in Southampton Village for $26,000,000. 

While nine of the 12 markets that TOWN & COUNTRY analyzes experienced declines in both Number of Home Sales and Total Home Sales Volume criteria, the Median Home Sales Price rose in 10 of the 12 markets. This demonstrates the resiliency of East End dirt, meaning that while the sales activity may ebb with factors such as the movement of stocks and bonds, the inherent value of our real estate has true, long-term staying power.

Most of this data reflects Q4 2016 sales activity, which was apparently weak for many sectors. Just as I predicted these stats would be sad for Q1 2017, I predict that the Second Quarter will be better for most markets and price ranges, while the high end remains against headwinds.

To view all reports visit TownAndCountryHamptons.com/Reports.

Town & Country North Fork 1st Quarter 2017 Home Sales Report

Tuesday, April 18th, 2017

The North Fork markets fared well, considering – better than its cousin, the Hamptons.

Two of the four markets monitored by TOWN & COUNTRY experienced increases in both the Number of Home Sales as well as the Total Home Sales Volume. Orient, (which includes East Marion and Greenport) had a great quarter with increases of +26% in both Number of Home Sales and +23% in Total Home Sales Volume. Oddly,the Median Home Sales Price dipped -7% to $487,500. Jamesport, (which includes Aquebogue, Baiting Hollow and South Jamesport) was in the black for the first three months of 2017. Its Number of Home Sales increased +18%, while the Total Home Sales Volume rose +21.5%, and the Median Home Sales Price shot up nearly +10%.

The two markets experiencing some pain during the first quarter were Mattituck (which includes Laurel and Cutchogue) and Southold (which includes New Suffolk and Peconic). Southold decreased -36% in the Number of Home Sales and 26% in Total Home Sales Volume, while Mattituck dropped 39% in the Number of Home Sales and 24% in Total Home Sales Volume. The shining sparkle for both markets, though, is they logged in the two highest sales in the price range of $2m-3.49m: 5909 Lloyds Lane, Mattituck at $2.95m and 1350 Paradise Point Road, Southold at $3.25m.

Looking at All North Fork Markets Combined, you can see that while there may have been a pull back of -18% in the Number of Home Sales, there is a clear increase in the higher price categories. TOWN & COUNTRY monitors six specific price categories, and Q1 2017 saw increases in $1m-$1.99m of +17% and double the number of closings in the $2m-$3.49m category.

This first quarter home sales report is proof that while TOWN & COUNTRY is experiencing heightened activity in our offices, the market in general did not. I believe low inventory is one of our greatest challenges for all North Fork markets. We have the buyers and the interest. Now we need the listings.

To view all reports visit TownAndCountryHamptons.com/Reports.

US Home Prices Rose 5.9%

Thursday, March 30th, 2017

The S&P CoreLogic Case-Shiller Index reported a 5.9% rise in home sales prices nationwide for January, year over year. That increase is the greatest since mid-2014. The 10-city index rose 5.1% January 2016 to January 2017 while the 20-city index gained 5.7%.  There are several contributing factors. The scales of supply and demand, dictate the price of anything from art to homes.

At this time in history job growth among the large demographic of 30-something-year-olds contributes to the demand side.  Economists have logged an important concern on that front that wages, rising at 2.5%, and home sale prices, increasing 5.7%, will eventually cause a disconnect.

On the other side of the scales we have supply.  According to the National Association of Realtors inventory in December hit the lowest level since they began tracking this data in 1999.  The number of homes for sale in January 2017 was over 7% less than the number of homes for sale same month last year.

How do these national statistics compare with our niche markets? Frankly, they don’t.  It is not uncommon to see our markets move inversely to national trends.  Because our markets are so diverse and so specialized, they don’t always move in tandem.  Right now, there are segments of our markets that desperately need inventory and others that are, well, flooded.

These vast differences are precisely why Town & Country Real Estate has always broken down our Home Sales Reports into individual markets and different price ranges within those markets in the Hamptons and across the North Fork. 

To view our published market reports visit www.TownAndCountryHamptons.com/Reports weigh in on your market concepts.

Town & Country Hamptons Year End 2016 Home Sales Report

Tuesday, January 17th, 2017

The 2016 Hamptons Home Sales Market closed out with a thud. In fact, the full report is covered with lots of RED!

Only 3 of the 12 markets monitored by TOWN & COUNTRY experienced an increase in the Number of Home Sales. Shelter Island had the greatest statistical change of +16%, from 73 to 85, year over year. Westhampton (which includes Remsenburg, Westhampton Beach, East Quogue, Quogue and Quiogue) still logged in the most Number of Home Sales with 318 — a slight difference from 2015’s count of 324.

Bridgehampton (which includes Water Mill and Sagaponack) had the greatest pullback with -27%, totaling for the year only 172 sales, a far cry from 237 in 2015. The Sag Harbor Area (which includes Noyack and North Haven) Total Home Sales Volume shot up 45% from $186 million to $271million year to year. But Bridgehampton (which includes Water Mill and Sagaponack) remained #1 for Total Home Sales Volume with $701million trading hands in 2016, though quite a dip (-32%) from 2015’s impressive $1Billion dollar volume.

Half of the markets monitored by TOWN & COUNTRY realized increases in the Median Home Sales price by as much as 25% in Sag Harbor Village from $1.2 million to $1.5 million, 2015 to 2016. East Hampton Village, on the other hand, sank 37% from $3.8 million in 2015 to $2.4 million in 2016. Looking at All Hamptons Markets Combined and the RED is glaring — losses nearly across the boards. In fact the $10-19.99 million price range dropped 32% year over year.

The good news is 2017 is poised to be a much better year than 2016. All indicators point to increased activity. All 8 TOWN & COUNTRY offices are reporting more inquiries and greater traffic flow at Open Houses.

To view all reports visit TownAndCountryHamptons.com/Reports.

TOWN & COUNTRY NORTH FORK 3RD QUARTER 2016 HOME SALES REPORT

Thursday, October 20th, 2016

2016 3rd Quarter Home Sales on Long Island’s North Fork demonstrates the heightened interest in these beautiful hamlets.

Jamesport (which includes Aquebogue, Baiting Hollow and South Jamesport) saw 22 homes trade hands, a 37.5% increase from last year’s 16 sales, same quarter. Additionally, the Total Home Sales Volume rose 31% from $7.1M in 2015 to $9.3M in 2016.

Mattituck (which includes Laurel and Cutchogue) enjoyed a great July, August and September this year with a 13% increase in Number of Home Sales, a 41% spike in Total Home Sales Volume and a 6% rise in Median Home Sales Price to $520,000. In fact, Mattituck (which includes Laurel and Cutchogue) recorded the 3 highest price sales for the quarter, all over $2M.

Southold (which includes New Suffolk and Peconic) had 2 less home sales for the quarter and a 12% decline in Total Home Sales Volume, but the Median Home Sales Price price remained steady at $465,000.

Orient (which includes East Marion and Greenport) experienced a similar pull back with 1 less home sale and a 20% drop in Total Home Sales Volume. Yet the Median Home Sales Price price ticked up to $515,000 or 2.7% increase.

“Our North Fork markets are poised to continue enjoying increased activity for the remainder of the year”, stated Judi Desiderio, Chief Operating Officer.

Looking at All North Fork Markets Combined and you see most categories safely in the black.

To view all reports visit TownAndCountryHamptons.com/Reports.

TOWN & COUNTRY HAMPTONS 3RD QUARTER 2016 HOME SALES REPORT

Thursday, October 20th, 2016

2016 3rd Quarter Home Sales in the Hamptons was, well frankly… all over the place.

This year to year statistical comparison shows definite signs of growth.

East Hampton Village set a new high watermark for Median Home Sales Price at $5.25M. All 8 home sales during these months were over $2M — “very impressive Median Home Sales Price, possibly a national statistic”, states Judi Desiderio, Chief Executive Officer.

Hot Montauk, more than doubled the amount of home sales from 8 in 2015 to 17 in 2016. Furthermore, the Total Home Sales Volume tripled year over year with a 198% leap to nearly $28M from $9M.

The Bridgehampton market (which includes WaterMill and Sagaponack) remained the top earner with $125M trading hands during July, August and September of this year. The Median Home Sales Price was a solid $3.9M, a 42% jump from last year’s $2.75M.

All Hamptons Markets Combined showed a respectable increase of 5% in the Number of Home Sales and a rise of 8.5% in Total Home Sales Volume, yet the Median Home Sales Price dropped 13% to only $850,000.

Looking back at our last bull market of 2014 and clearly you see the pull back since then when 410 homes close, with $760 million trading hands.

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! 

MIXED SIGNALS

Thursday, August 11th, 2016

Second quarter 2016 statistics have been released and they are not sending clear signals by any means.

On one hand, The National Association of Realtors reported that home prices rose in 83% of the nation’s 178 major real estate markets. Yet, according to CoreLogic Case Shiller Indices overall prices are now just 2% off the peak set in July 2006.

Homeownership rates are the lowest since the Census Bureau began tracking quarterly statistics in 1965 – now at 62.9%. Economists estimate 200,000 to 300,000 fewer US households are purchasing new homes annually, than during normal market conditions. The true American Dream of home ownership is in flux.

Personal wealth has always been driven for most by their homes. Retirement, tuition, vacations, and much more usually financed via home equity. Is there an entire generation of permanent renters out there? I hope not, for their sake.

First time home buyers are a critical piece of the puzzle and the government must support this vital future growth. Mortgage qualifications are a big part of today’s issues. Keep in mind, home sales create jobs and employ ancillary services from painting to landscaping.  It was home sales and the economic boost it provided that pulled us out of the worst economic downturn since the Great Depression.

How can lawmakers support growth from the bottom up?