STATE OF THE MARKET
…ONE YEAR AND COUNTING
Hampton real estate has had several really good years since the 2008 housing crash and the recession that followed. The years of 2013 and 2014 saw record sales and price increases that brought us back to the 2006-2007 levels.
Buyers and homeowners never looked back to the scary times immediately following the 2008 housing recession and instead, moved forward as if the downturn never happened---at least they did here in the Hamptons…2015 was a year that no one thought we would see again. Prices went into the stratosphere and seemed to take on an irrational upward momentum; some even spoke of another “bubble”
Then, at the beginning of 2016, things changed!
2016 began with a very slow start. Buyers were looking at record high prices and even if they had the money to buy and the desire to own a home here, they dug their heels in and stopped looking. All buyers that is, with the exception of the lower priced buyers—those buying in the under $2mil range.
Now, since the beginning of the 2nd quarter we have seen more buyers out looking and buying again, but only if they can find a very well-priced property or an owner willing to negotiate downward by 15-20% off the asking price of a property. The market is active again, especially at the $2mil to $3mil range--buyers want to buy and sellers want to sell and that is making for a potentially strong 3rd quarter!
The theme of what I call “Value Buying” is what is driving all price levels of the market, from $3mil and up. No one is buying property that is overpriced, or is perceived as being overpriced. Now, I can’t say that this will go on for a long time but at least it is the reality right now. Prices are still up in the stratosphere as I see it, even after the purchase price is discounted by the 15-20% drop. The market will adjust according to what the buying public perceives as a leveling out of prices…that will happen as soon as the market adjusts and prices stop falling.
**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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