Home sales in the Hamptons increased by 8.8% in the fourth quarter of 2023 compared to the fourth quarter of 2022. Overall, 2023 was a weak year for sales, but experts predict that 2024 will see improvement.
One of the major issues in Hamptons’ real estate is a lack of inventory. The area saw a huge spike in sales during the COVID-19 pandemic, meaning much of the available inventory was purchased in 2020 and 2021. Owners have not been selling those same properties, leading to a small amount of availability.
Judi Desiderio, the founder and CEO of Town & Country Real Estate, commented, “I don’t know that a lot of those people are going to ditch their homes. These homes that they bought are their safe havens.”
The small amount of improvement in the fourth quarter of last year is the first time year-over-year sales have increased in eight quarters. Despite the spike, sales were still lackluster compared to the 10-year quarterly average. The median price of homes in the area also soared to $1.85 million because of low inventory, making it less likely that available homes will sell.
Todd Bourgard, CEO of Long Island, the Hamptons, and the North Fork for Douglas Elliman, blamed prolonged periods of indecision for the lull in selling and buying homes in the area. “2023 was a tough year to navigate,” he told The South Hampton Press. “Putting deals together was more difficult than ever before. And our agents really navigated through those deals beautifully. They did a great job putting deals together when everything seemed to be just a little bit more difficult.”
Despite the agents’ hard work, Bourgard admitted that most of the process was giving buyers and sellers adequate time to make hard decisions. “You can’t talk somebody into that,” he said. “This is their biggest asset or their biggest purchase. So you let it take its own course.” Houses in the Hamptons have always been a strong investment, and that remains true in 2024. Therefore, sellers are rare, especially in lower budget ranges.
Jonathan Miller, president and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm, acknowledged these issues but was still optimistic about the market in 2024. He called 2024 “The Year of Incremental Change,” commenting that the Federal Reserve cutting federal fund rates will spell success for the real estate market. “I can’t remember being in a period of time where housing was anticipating rate cuts when unemployment was below 4 percent,” he said. “It’s like the perfect storm for housing in 2024. Granted, it’s not going to be a boom or frenzy like we had during the pandemic, but it’s going to be a year of higher transactions.”
Miller added that inventory will likely remain a problem in the Hamptons, but overall things should be looking up. Desiderio agreed, but only when it comes to the rental market. She maintained that buyers would be hesitant, but that they might be willing to rent. “This year’s going to be a banner year—huge,” she said of the rental market.
