Hamptons real estate market cannot keep up with demand from buyers

The Hamptons housing inventory hits an all-time low, fuelling the competition among those who want to buy a home in New York City suburbs.  

The Hamptons real estate report indicates that currently, there are 450 for-sale listings available on the market. The listing supply dropped 8.1 percent month-over-month and nearly 55 percent compared to the last year, Behind the Hedges reports.

The shortage of homes available on the market leads to a decline in contract activity and rising home prices. According to the market report, contract activity decreased in all areas except East Hampton and Sagaponack. 

In addition, buyers must be prepared to pay price premium if they want to purchase a property in the Hamptons. The number of homes sold for over $10 million grew 33 percent from March 2021. The luxury real estate market remains active and has the highest number of listings. The median sold price for a home in this area also went up and reached $2.325 million. 

Homes in Hamptons are selling quicker than usual. The number of days a property spends on the market before going into contract fell by 42.3 percent month-over-month and almost 90 percent year-over-year. Now, on average, a listing spends 56 days on the market, the least amount of time in three years. 

According to Behind the Hedges, the Federal Reserve is attempting to tackle the rising home prices by increasing the interest rates. However, this activity will not stop prices from growing or lower them. Hamptons Market Data revealed that they do not expect a downturn in the sales market any time soon. 

Resources:

“Hamptons home inventory suffers historic drop: report,” by TRD Staff (The Real Deal, 2022)

“The Hamptons Real Estate Report March 2022,” (Hamptons Market Data, 2022)

“Hamptons Home Prices Rise, Luxury Homes in Contract Spike,” by Adrianna Nava (Behind the Hedges, 2022)