Hampton had a record breaking number of home sales in the year 2014 but after that, things are starting to slow down especially in the luxury real estate. Both sales and the median prices of Hamptons real estate have dwindled in 2015 from where they used to be last year according to a report by Douglas Elliman Real Estate.
The median sales price for a house in the Hamptons dropped 6.5 percent to $849,000 compared to last year, as told in the said report. The figure of homes that were sold dropped 15.7 percent to 590 this year, down from 700 sales if compared to last years sales from the same month. However, average home price went up by 2.5 percent year over year.
The differing figures are attributable to the reaction in the market from last year's home sales, according to Jonathan Miller, the president of Miller Samuel Real Estate Appraisers, who wrote the report.
The curbed demand flared up last year as people began to consider investing in real estate again for the first time after the housing crisis, Miller said. Such demand tantamount 700 sales which is record breaking.
"That demand has mostly been absorbed, so what we have now is the prices showing mixed trends, but sales are down," he said. "There isn't the same sense of urgency by buyers that there was a year ago, but there is still above-average activity occurring. It's just not at the breakneck pace it was last year."
The current Hamptons real estate market is just going back to normal according to the CEO of Douglas Elliment, Dottie Herman. She said,"While sales aren't record breaking, they are still healthy"
She also added that in a market like Hamptons, big deviations can move data.
On the other hand, For Miller, because the Hamptons are commonly a second-home market, and highly moved by seasonal trends, quarter-over-quarter data does not paint the full picture.
