Looking to Buy or Sell a Hamptons Home in 2020? Explore the State of the Market and How You Can Plan to Navigate the Landscape
Beloved for its soft, powdery beaches, fresh seafood, and 18th-century estates, the Hamptons has long been a vacation mecca for well-to-do New Yorkers. As a result, it’s often top of mind when New Yorkers start daydreaming about where to buy a vacation home. If you’re thinking about purchasing a charming cottage or historic estate in the Hamptons this year, here’s everything you need to know about the current state of the real estate market.
Prices Are on the Mend
It’s no secret that the Hamptons real estate market hit a bit of a rough patch thanks in part to the passage of a 2018 tax bill that capped SALT deductions at $10,000, making it more expensive to own property in states like New York where home prices and property taxes were already high. Local realtors pointed to the bill as one factor that slowed down sales in 2018. But after almost two years of decline, the median price of homes on Long Island is slowly on the rise. According to a third-quarter report from Miller Samuel and Douglas Elliman Real Estate, the average home sale price rose to $857,000, a 5.5% increase from the year before. While the jury is still out on what prices will be like in 2020, it appears the market may be headed on an upward trajectory.
It Will Continue to Be a Buyer’s Market
An August 2019 article in the New York Times found that buyers negotiated some stellar deals in the Hamptons. Per the article, “In the usually high-flying Hamptons, the housing market is in a rut. Inventory is up; prices are down. The median sale price of a single-family home in the Hamptons has dropped 7.9 percent during the first three months this year, according to a report from Douglas Elliman Real Estate. Those who did buy found bargains.” Because of those factors, buyers definitely had the upper hand last year. And while home prices are slowly increasing, many realtors believe that the Hamptons will continue to be a buyer’s market in 2020.
Luxury Homes Will Sit on the Market Longer
In 2019, the luxury segment was most impacted, with the highest-priced homes taking longer to sell than their less expensive counterparts. According to Concierge Auctions’ 2019 Luxury Homes Index report, the 10 priciest properties in the Hamptons sold for just over $24 million on average and sat on the market for approximately 706 days. Luxury homes that stayed on the market for more than six months typically sold at a discounted rate of almost 40 percent. Luxury homes will likely continue on this trajectory in 2020—but that’s good news for anyone wanting to purchase a multimillion-dollar home without breaking the bank. Plus, even if you are selling, an experienced real estate agent can help you avoid these stalls and get you the best price for your property.
If you’re looking for an experienced and reputable real estate firm in the Hamptons, contact Matthew Breitenbach and the today. With years of experience selling homes in , , , and beyond, the team can answer any questions you have about the property and guide you through the selling process.