The housing markets in the Hamptons, New York, had a strong second quarter, with median sales prices of single-family homes hitting a record high, according to a Douglas Elliman report released Thursday.
Meanwhile, the luxury segment, defined as the top 10% of the sales, reported double-digit growth both in the number of sales and median prices.
The median sales price for single-family homes in the second quarter was $1.07 million, the highest price on record, according to Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the Douglas Elliman report.
The median sales price across all property types, single-family homes and condos included, reached $1.03 million during the second quarter, the second highest level on record, tying with the second quarter of 2007.
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It’s been a full decade since we’ve seen prices at this level, Mr. Miller said. "Overall, it hasn’t broken the pre-financial crisis level, but it’s very close."
Sales activity was also up significantly in the second quarter. Throughout the Hamptons, there were 689 residential transactions, an increase of 22.8% from a year ago. Compared to the first quarter of this year, sales activity was up 46%.
Luxury Markets Lead the Way
There was an obvious market shift toward high-end properties during the second quarter, Mr. Miller noted. The number of luxury sales, which had an entrance threshold of $3.9 million, increased 21.1% year-over-year to 69. Median sales price rose 12.3% to $6.175 million.
For super-luxury properties priced $10 million and more, there were 18 sales in the second quarter, doubling last year’s numbers. Lowering the entry point to $5 million, 48 homes were sold at that price and above, representing a 45.5% increase from a year ago.
The high-end market also moved faster during the second quarter, as luxury listings took, on average, 241 days to sell, 28.3%, or 95 days, less time than the same period last year. Thanks to the market velocity, inventory was down 10.7% to 241.
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Sellers made slightly smaller concession to strike a deal. The discount from last listing price to the sales price in the second quarter was 15.2%, compared to 15.6% a year ago. On the other hand, 4.9% of homes sold higher than asking price, suggesting bidding wars are happening among certain properties.
Considering the lackluster performance in the last couple of years, the strength of the luxury markets is worth keeping an eye on, Mr. Miller said. "I would not categorize it as frenzy yet, it’s only one quarter after all. But buyers tend to come in waves. Maybe it’s sort of a before-and-after-the-election comparison. There is some kind of certainty in the market now."
The most expensive sale in the Hamptons during the second quarter was an oceanfront home on Gin Lane in Southampton, which sold for $31 million in May. The second highest priced sale was a home owned by the late Texas financier Daniel Breen at Middle Lane in East Hampton, which closed for about $25 million in April.