Hamptons home prices take a nosedive for the first time in four years

The Hamptons was a prime spot for homebuyers and renters in the first year of the COVID-19 pandemic. Three years ago, home sales in the Hamptons boomed thanks to the record-low mortgage rates and the pandemic-induced migration from New York City. As New Yorkers craved more space and access to nature, home prices in this part of Long Island began to skyrocket. Now, the once red-hot market is taking a break. 

The median sales price of a home in the Hamptons fell 7.6 percent in the first quarter of 2023, according to the report from Town & Country Real Estate. This marks the first decline in the Hamptons home prices since 2019. In just one year, the median sales price in this sought-after Long Island enclave dropped from $1,800,000 to $1,662,500. The Hamptons real estate market also saw fewer home sales at the beginning of 2023.

The number of homes sold in the Hamptons in the first three months of this year dropped 44 percent from a year prior to 424. Home sales declined across all price points. However, the upper end of the market, which includes listings priced between $10 million and $19.99 million, saw one of the biggest slowdowns in sales volume. The number of homes sold within this price range slipped by 61 percent. 

“As any Hamptons Real Estate Broker will tell you, business took a turn in June 2022 then went on vacation elsewhere from Thanksgiving through February, “ Judi Desiderio, CEO of Town & Country, wrote. “The retreat began with interest rate hikes at an unprecedented pace, due to the highest inflation in four decades, not to mention a stock market that gave even a seasoned investor whiplash.”

In its quarterly report, Town & Country analyzed 12 real estate markets in the Hamptons, all of which saw a decrease in home sales volume. In addition, half of them, including Montauk, Amagansett, Southampton Area, Southampton Village, Bridgehampton, and Shelter Island, also experienced a decline in the median sales price. Home sales volume fell the most in Sag Harbor Village, while Shelter Island faced the greatest drop in the median sales price. 

Resources:

“Hamptons Q1 2023 Home Sales Report,” (Town & Country Real Estate, 2023)

“Hamptons Home Prices Fall for the First Time Since 2019,” by Misyrlena Egkolfopoulou (Bloomberg, 2023)

“Hamptons home prices fall for first time in four years,” by TRD Staff (The Real Deal, 2023)