WHAT ARE YOU FINDING IN YOUR LUXURY MARKETS...SLOW, PICKING UP OR DEAD?
With the push and pull of the various financial market trends it is hard to get a bead on just what the real estate market in the Hamptons will be doing in the next quarter---or the 2017 summer market, which by all standards is our best time of year to sell houses.
- Will we continue to see the slow sales in the luxury market as we did in 2016?
- What will happen with the "meat and potatoes" segment of the market--that would be the under $1mil. houses that have always sustained the market when we have seen slow downs previously?
- What will drive the housing market going forward now that we see major changes coming in our taxes and the "made in America" trends leading to more jobs?
- Will we see another housing boom like we have not seen in generations?
Here in the Hamptons we finished the 4th quarter of 2016 with a 14.7% decrease in sales and a 7.2% drop in price--all this with a decline of 10.7% in inventory! Most of this came from the decline of sales in the high end or luxury matrix sales in 2016.
This decline came as we went through one of the more grueling elections in recent memory--no one wanted to guess where we were headed and now that we have a better sense of what financial markets are doing, we can breathe a little easier.
THE HIGH END TREPIDATION APPEARS TO HAVE VANISHED!
This was the first decline in sales in several cycles and with the election behind us, we are looking at a surprising upturn in optimism, according to certain financial prognosticators. The stock market is at record levels, the looming increase in interest rates hangs over the marketplaces and there was surprising turn of events in southampton NY in January!
After that weak 4th quarter that I mention above, the Southampton Office for Douglas Elliman brought in $96 Million in sales for the month of January, 2017!! This was a totally unexpected yet very welcome sign of the housing market for the near future...a record for the usually very slow month of January!
This record figure comes from deals put together in the months of November and December of 2016, when we had a rush to buy before prices start to increase in the new year....and yes, they are up another 10% after a slight decline in the 4th quarter of 2016.
What are you finding in your luxury housing markets? Is it still awash with negative attitudes and slow growth, as it was in 2016?
...OR ARE YOU BEGINNING TO SEE THE LIGHT AT THE END OF THE TUNNEL, AS WE ARE HERE IN THE HAMPTONS??
**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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