Supply decreased again and there is no more listing discount. Though some may look at the 12% decrease in median sold price to $1,849,000 as a sign that prices are declining in the face of more new listing inventory, there is an explanation!
The number of properties priced less than $2 million going under contract continues to impress, tipping the scales down on the sold price for the month of August. The median listing discount hit 0% for the first time since the pandemic and maybe, in all of Hamptons real estate history. Certain properties continue to achieve brow raising over-asking price offers. Even as market activity has returned to pre-covid levels, data show that prices are in fact continuing to increase overall.
The gap between the number of new listings coming on the market and the number finding contracts was much smaller going into September 2021 than fall of 2020. August 2020 had 25% more new listings come on the market than the number of contracts signed and in August 2021, there were only 12% more new listings than contracts signed. There is also less inventory available for sale now than there was this time in 2020. It is an even tighter Hamptons market today than at the height of the COVID market last year.
Though price reductions are proliferating this fall 2021, we are noticing that once again, this is not a reflection of a decrease in pricing, but rather hugely overzealous sellers tiring of neighbors finding contracts at record prices before them and coming to grips with the reality that their homes are only worth about 20% more than they were this time last year, instead of the 50% they were hoping.
The number of days to contract was the second lowest it has been in history at 64 days from listing to contract signed. May 2021 beat August by only 4 days. Expect the number of days on market to begin to increase as more listing inventory finds its way to the market. Pricing however, looks to continue to be increasing when comparing listings sold in August to their last traded competitors, simply due to overall lack of supply. Homes not only sold this August, but many were taken off the market as sellers decided to stay put for a little while longer or reevaluate their positions.
The Hamptons real estate market is always a balancing act between sellers’ lofty expectations and buyers’ desires to find that good deal. Entering fall 2021, Hamptons real estate values are up even more and prices continue to climb. As we move to close out 2021, with new listings steadily hitting the market amidst a depleted supply that will likely take some time to catch up with continued strong market activity, the Hamptons is now primed for buyers and sellers alike to be able to feel confident that they can walk away from a closing table happy that everyone got a good deal.
All Hamptons real estate stats and charts can be found by visiting thehamptons.market.
Adrianna Nava is the Hamptons real estate market and transaction expert. She is an associate broker with Compass and founder of Hamptons Market Data.