Vacation homes priced over $5 million dominated the Hamptons luxury market in the second quarter, typically the high season for activity in the area, brokerages reported this week in a series of market reports.
The South Fork recorded 49 sales of homes over $5 million in the second quarter, one of the strongest on record, according to Douglas Elliman, which released its quarterly Hamptons market report on Thursday. The area’s priciest homes defied generally subdued sales activity in the overall market.
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"There’s a split in the market… homes above $5 million gained in market share," said Jonathan Miller, chief executive of appraisal firm Miller Samuel and author of the report.
Expensive sales pulled luxury prices up across the Hamptons. The median price for a luxury home in the second quarter rose 2% year over year to $6.3 million, according to the report. Major sales recorded in the second quarter include a $40 million mansion in East Hampton and a $17 million new construction in Bridgehampton, according to sales records on listing site Out East.
Meanwhile, more affordable luxury, priced between $1 million to $5 million, is undergoing what Mr. Miller called a "reset," as sales decline and inventory rises.
Luxury inventory, defined as the top 10% of the Hamptons market, has jumped by more than one-third compared to last year, saturated with new developments priced below $5 million, Mr. Miller said.
Overall, the Hamptons recorded 601 sales in the second quarter, a near 13% drop from a year ago but still higher than the 10-year quarterly average.
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"More large, high-end homes sold, driving sales volume up as well as average price," said Corcoran in its second quarter report, also out Thursday.
Second-quarter sales in the Hamptons totaled roughly $1.13 billion, a 15% increase from last year, Corcoran said.