The race for a Hamptons house is already on, and affluent New Yorkers are participating to get hold of their beachfront rentals and buys this year. Months before Memorial Day Weekend, the rush to secure a Hamptons home for the summer has started. Realtors are warning beachgoers to brace up for soaring prices.
Presidents Day weekend typically marks the start of the boom in luxurious beach towns’ home markets. However, this year, local real estate agents witnessed the race starting soon after the New Year.
Hamptons home sales have skyrocketed since the pandemic with no signs of slowing. Realtors believe the recent global unrest, such as the war in Gaza, is the reason behind this rising demand. Leveraging this opportunity, many well-heeled buyers and renters are trading their typical overseas hangs for more domestic spots.
According to local agents, this is a signal for deep-pocketed patrons to be prepared for price hikes of around 35 percent. Meanwhile, sellers are expecting deals at the asking price or even above it, as properties in East Hampton, Bridgehampton, Southampton, and Sag Harbor continue to command. The lowest price tag is seven figures.
Considering how the early interest has exhausted the seaside communities’ famously short housing supply, Town & Country Real Estate’s Judi Desiderio stated, “Prices may be going up, but the number of sales has gone down.” She added, “There simply aren’t properties for sale.” Most of the remaining properties are incredibly pricey, including an 8,000-square-foot house in East Hampton priced at just under $18 million.
The house is within walking distance from the beach and East Hampton Village and features six bedrooms, seven full bathrooms, and five half baths. It also has a large outdoor area with a fireplace, kitchen, swimming pool, and infinity edge water spa, while the inside exudes a classic aesthetic. The seller, retired New York financier Jess Reeves, 57, is among the many homeowners taking advantage of increased demand.
Emphasizing the upswing that makes it possible to embrace the wait-and-see approach, Reeves stated, “There is not much for sale in this neighborhood because people have lived here forever and don’t usually leave, so we had interest off the bat.” He added, ‘We aren’t going to sell by doing the traditional open house course but taking a word-of-mouth approach so we can vet serious prospects.” He even turned down an arrangement to make him $700,000 a month. Reeves suggested that the market is not only influencing sellers but renters as well.
The website of local luxury realtor Corcoran features a smaller East Hampton five-bedroom for $300,000 a month, further echoing Reeves’ opinion. Ashley Farrell, a broker with Corcoran, said she has already made nearly half of her usual $40 million annual sales this past month alone. Compass broker Richard Steinberg, who lives and sells in East Hampton, said he, too, has seen a surge in sales. He attributed the increase to global unrest in the Middle East and Europe, which has put off his usually high-flying clients.
Several data points support the local agents’ assertions, with a recent market report from Douglas Elliman also capturing rising prices in places like East Hampton, Bridgehampton, Southampton, and Sag Harbor. An intelligence report from Compass further found the median price for a home in the South Fork, an area that includes all the towns above, jumped by just over a third to a high of $2.1 million in the last quarter of 2023, compared with 2022.
Still grappling with this concept are middle-class buyers like a woman who spoke to Mansion Global after relocating to the Hamptons with her family during the pandemic but has still failed to find a reasonable four-bedroom nearly four years later.
In light of the current landscape, it’s evident that the allure of the Hamptons remains irresistible to those seeking luxury and exclusivity. With global uncertainties prompting a shift toward domestic getaways, the demand for prestigious Hamptons properties has surged to unprecedented levels.
