Hampton’s Home Buyers on the “Sidelines”

Hampton’s Home Buyers on the “Sidelines”

Hampton’s Home Buyers on the “Sidelines”

Home sales in New York’s Hamptons fell to the lowest marks in 3 years as potential buyers of luxury properties stayed on the sidelines during this past volatile Quarter on Wall Street.

Purchases in the 2nd-home market popular with Wall Street bankers and celebrities, totaled 437 in Q-1 of this year, this down 19% from last year, according to a real estate report published Thursday. The median sale price was $895,000, a 2.8% fall.

Last year’s sales activity in the area receded, as the financial industry began Y 2016 on a down note.

Wall Street bonuses fell 9% in Y  2015 to an average of $146,200. In January, the Standard & Poor’s 500 Index registered its weakest start to a year since Y 2009 amid worries of declining Crude Oil prices and fears of an economic slowdown in China.

Sales of luxury homes, the Top 10% of the market priced at $4.05-M in Q-1 dove 20% to 45 deals, according to the report. The median price of those purchases was $5.5-M, unchanged from Y 2015.

Wealthy buyers “view a pullback in the stock market as a buying opportunity for stocks, which makes them sit on the sidelines for vacation homes,” said the CEO Town & Country Real Estate, which also released a report on the Hampton’s market.

Sales fell in all but 2 of the towns and hamlets measured by Town & Country.

In the Bridgehampton area, which includes Water Mill and Sagaponack, 30 homes sold in the frame, a 39% fall from a year earlier, the brokerage said.
At “$18-M and up, there’s just too many things on the market,” he said. “There’s just too much inventory.”

Lower-priced properties were in demand during the Quarter as buyers seeking value flocked to towns west of the Shinnecock Canal, such as Remsenberg and Hampton Bays, said a S-VP Corcoran Group, which released its own report Thursday.

Homes priced below $500,000 accounted for 42% of all sales west of the Canal, compared with 37% a year earlier, Corcoran Group said. Deals for $1 to 2-M accounted for 20% of transactions in those towns, up from 13% a year earlier.

Now anything $3.5-M and under is the customer base there.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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