CONDOS: SUDDENLY, LAST SUMMER....
I just watched as 22 units of a total of 50 Condos at Bishops Pond went to contract here in Southampton Village this past summer. This follows a sudden surge in sales at the Polo Club Condos where 6 units of 12 closed earlier this year after sitting only partially sold for 2011-2012.
We all know that "Baby Boomers" or "War Babies" (Born after the end of WWII) are still one of the largest demographics of the American Population. But :
How much of an effect does that demographic really have on real estate sales?
How much of this segment of the population is really prepared to buy a home/condo?
I think that we need to make an educated guess and base it upon what we are observing in the real estate business as a whole: ~More main floor bedrooms; ~more single story homes being built, ~fewer standard bathtubs in primary homeowners baths, ~a shower only or a specially designed walk-in bath tub or higher sided Jacuzzi types of tubs have become standard in new construction; ~an increase in the sales of condos and other types of community living involving buyers of 50 years and older.
*PROFILE OF OLDER AMERICANS: 2012
- Americans over 65 numbered 41.4 million in the last Department of Health & Human Services report for 2011
- Americans over 65 represent 13.3% of the U.S. Population, or 1 in 8 Americans are over 65.
- The number of Americans over 65 increased by 6.3 million or 18% since the year 2000.
- This is compared to 9.4% for the number under 65 population
- However, the number of Americans aged 45-64 who will reach 65 over the next 2 decades increased by 33%!!!
- Since 1900 the % of Americans who are 65+ has more than tripled.
There are 3 reasons that condos are taking on greater importance than in the past:
- The "Graying" of America is the demographic with the need for a "community" type of living without the costs of larger pieces of property.
- The homeowner who does not want the expense or the work of maintaining a large single family home.
- The single person who does not want land with a place to live but they do like the amenities that can come with condo living...Pool, tennis, common grounds with a clubhouse for entertaining.
SOUTHAMPTON VILLAGE, NY HAS VERY FEW EXISTING CONDO DEVELOPMENTS...
Rarely does the Village of Southampton allow for development of housing complexes or condo/apartment complexes. There just is not enough vacant land in one spot for that kind of building and until the last few years, condos were not very popular. Most buyers were interested in single family homes only in the past.
Condo living was a fixed budget kind of living and most who bought condos here were downsizing for reasons having to do with affordability.
In fact if you had only $300K to $500k to spend, you bought a condo. Since there were only 4 condo complexes in the Village for this kind of buyer, the indication of their relative un-importance was evident. There are approximately 75 units in the price range of $300K to $500K in the entire Village and maybe another 40 units in the $500K to $800K range.
In the 80's one builder who was well established here in Southampton village decided to build a complex for the elder Estate Section homeowners who were trying to downsize but wanted to keep a foothold in the estate section. He built what is now known as "The Irving Townhouses". There are only 8 units and they are quite grand.
The Irving is only 8 townhouses and as condos go, it is the only one in Southampton Village Estate Section. Estate owners who sell their massive estates on Halsey Neck, First Neck, Captains Neck or even Gin Lane are very happy to call these Townhouses home, especially in their declining years. Downsizing to 2500 Sf from their 4,000 to 8,000 Sf estates is a perfect way to go for these few condo owners.
The Irving Townhouses trade in the $1,900,000 to $2,000,000 range--If they were brand new they would be double that!
A NEW TREND IN BUILDING HERE: TOWNHOUSE CONDOS WITH ALL THE BELLS AND WHISTLES!
With the aging of the American population comes the need for changes that real estate professionals must keep in the forefront of their minds:
- Main floor bedrooms are a necessary part of the plan in any new home today.
- Demand for single story homes are beginning to increase.
- Condos and co-ops (more of the former than the later) are becoming the way many builders are expanding their businesses.
SOUTHAMPTON VILLAGE NEW CONDO COMPLEXES:
There are 2 new condo complexes that have been planned and built in Southampton Village in the past 2 years:
- POLO CLUB AT SOUTHAMPTON--priced from $1.4mil to $1.995mil
- BISHOPS POND AT SOUTHAMPTON--priced from $850K to $2.8mil.
These condo buildings are built to the standards that most new construction homes are; the buildings are large and the condos are all 2 story townhouses. They are laid out as many new homes are with the family room/dining/ and kitchen all open to one another. Bedrooms are all of a large scale and designed to attract the most fussy of homeowners. These condos have all the bells and whistles of the brand new construction single family homes offer without all the upkeep of grounds and building.
The cost of landscape care has ballooned since the housing crash and with fewer people employed to do this work, prices have gone sky-high!
JUST TO GIVE YOU AN IDEA OF THE NEW CONDO OFFERINGS:
The condo life style is a fairly new one here---There are older condo communities but they were built in the 80's and offer very small scale rooms and usually are between 700 Sf and 1000 Sf.
These newer condos are 2000 to 3000 Sf and offer a "home" like quality that the older condo complexes never will.
I foresee that this category of home is just beginning to build to a "crecendo" and we will see more and more of these complexes appear over the next 5-10 years.
WHAT ARE YOU FINDING IN YOUR COMMUNITY? IS THERE A NEED THAT IS NOT BEING FILLED? ARE THERE OFFERINGS OF "LUXURY" LIVING CONDOS IN YOUR COMMUNITY?
*Source: Department of Health and Human Services; Administration on Aging
**ALL INFORMATION AND CONTENT IN THIS BLOG IS ORIGINAL TO PAULA I. HATHAWAY. The views expressed herein are my personal views and do not reflect the views of Douglas Elliman Real Estate
Paula I. Hathaway, Senior Broker Associate, Douglas Elliman Real Estate
Southamtpon Village Real Estate Specialist since 1995; Also Specializes in North Sea, Noyac, Water Mill and Bridgehampton, New York
Diamond , Gold and Chairman's Circle Awards; Top Producer since 2005
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