With market volatility and interest rate shifts, 2022 was quite a roller coaster ride (especially in the headlines).
So what is in store for our market in 2023? While I don’t have a crystal ball to predict every single outcome, here are some predictions and general thoughts based on what I’m already seeing across the buy and sell side in the Hamptons:
1) Reno and rehab projects are going to make a comeback for end users.
Many buyers are going to be more open than ever to a project – it doesn’t mean a teardown, but something that may work (cosmetic or down to the studs). These buyers are thinking more long-term and want to hold the property.
2) Interest rates will still impact volume but with tight supply, we will continue to see normal volume.
We still have a shortage of supply, so contract volume won’t be as fast as we saw during COVID — we’re just stabilizing.
3) Well-designed and priced rental inventory for summer 2023.
The last two years saw a surplus of rental inventory (which was a direct output of the exponential increase in sales), however, it’s important to note that a significant amount of the inventory was just not rentable (hence the headlines from last summer about an over-saturated rental market and prices coming down.). Two years later, new furniture, updated paint jobs, and even some good renovations, we will now see some great products at competitive prices.
So, if you’re going to be renting your property, keep pricing competitive or make sure it’s designed and furnished to appeal.
4) Our market is seeing an influx of new construction on the market — and not all are created equal.
Over the last 3 to 5 years there has been a tremendous amount of builders that have come on the scene in the Hamptons and they are building a product that is more attainable to first-time homebuyers. While in theory new construction is great, it’s very important to know who you’re buying from and what additional product they have built. Remember, if it seems too good to be true, it likely is.
Sara Goldfarb is a Hampton business leader with the Alexander Team at OFFICIAL.