The real estate market in the Hamptons remained "soft at the top," with the number of sales over $5 million hitting the lowest point in more than three years in the first quarter of this year, according to Douglas Elliman’s first quarter market report published Thursday.
There were 27 sales over $5 million in the first three months of 2017, down 12.9% year-over-year and reaching the lowest level since the third quarter of 2013, according to Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel, which compiled the quarterly market report on behalf of Douglas Elliman.
"The soft condition has been lingering for a couple of years," Mr. Miller said. "Some high-end inventories are overpriced while some are expiring and off the market, which has been impeding sales."
So-called "affordable luxury" within the price range of $1 million to $5 million, was the strongest performing segment, where sales gained 21.6% in the first quarter from a year ago.
In terms of the overall luxury market, which is defined as the highest 10% of all sales and had an entry price point of $3.7 million in the first quarter, the median sales price reached $5.175 million. That is down 5.9% from the first quarter of 2016.
The number of sales across the luxury market stood at 48, not far off from last quarter’s 53 and the 45 from the first quarter of 2016.
The most expensive sale in the first quarter of this year fetched $25 million, with another three surpassing $10 million, according to Scott Durkin, chief operating officer at Douglas Elliman.
"We are seeing a resurgence of buyers after the hiccup during the election year," Mr. Durkin said. "Meanwhile, sellers become more negotiable."
More:Click to Read More About Luxury Markets in The Hamptons
In the first quarter, the average listing discount, meaning the discount from the last listing price to the sales price, reached 16.2%, compared with 8.5% a year ago. Listings stayed on the market longer too, averaging 197 days. In comparison, it took an average of 109 days for a luxury listing to find a buyer in the first quarter of 2016.
In other areas of Long Island, the luxury market followed a similar pattern. "Luxury inventory continued to decline along with price indicators," Mr. Miller pointed out.
Excluding the Hamptons and the nearby popular vacation destination, the North Fork, the median price of homes in the luxury segment on Long Island stood at $1.02 million, falling 9.5% from a year ago. There were 3,700 luxury listings, down 7.7% from a year ago.