Last week we discussed how overpricing is negatively impacting the movement of the Hamptons market. This week we’re looking at the impact of new listings. In some price points and locations, new listings are making contract movement possible. In others, it either bolsters the fact that overpricing is prevalent or demonstrates that demand is lessening from where it was in fall of 2020.
Less than $1.5M Market
Despite the lack of new listings to market, properties continue to go into contract at volume in East Hampton, Sag Harbor, Bridgehampton and Southampton. However, activity in East Hampton is starting to stall compared to previous weeks. New listings are needed, or existing inventory needs to start to find a middle ground between buyers and sellers to keep momentum going here. Water Mill and Wainscott have been completely dormant with no new listings, nothing in contract, and nothing closed in the last four weeks.
To display the power of a new listing in this price point, we reached out to Sara Goldfarb of Douglas Elliman and Demi Reichart of The Corcoran Group. Goldfarb brought 219 Ferry Road in Sag Harbor to the market at $1,495,000 on January 30. It went into contract six days later. “I leveraged data on what has been trading in the Sag Harbor area – and what is still on the market; I strategically priced the property with a number that would get people in and get offers quickly,” Goldfarb explained, sharing that she also took measures, like creating a short video tour to make the property stand out.
Similarly, Reichart was able to secure her seller at 102 Middle Highway a deal in 11 days. Listed at $699,000, the offer was cash at full price because “…the home was priced accurately. In this market, properties that are price right will sell, and sell quickly!” Reichart expressed.
Wainscott gained some activity after 32 East Gate Road came to the market and went into contract 18 days later. Bridgehampton has had six listings go into contract in the last three weeks, but no new listings. So far, despite the lack of new inventory, Bridgehampton isn’t showing signs of slowing down. Sag Harbor has had four new listings come to the market which will hopefully allow it to continue its persistent activity.
Conversely, East Hampton, Montauk, Southampton and Water Mill are showing signs of stalling. Though registering relatively strongly so far for 2021, listings going into contract are also starting to decline as a result of decline of new listings in these areas. More new listings will be needed to maintain momentum.
2021 started out with new listings outpacing the number of listings going into contract, but that’s over now.
The Amagansett and Southampton markets have come to a halt after strong activity the first week of the new year. New listings in Southampton and Wainscott have not prompted any in contract activity, as we have seen occur in other parts of the Hamptons market.
Bridgehampton has gained back some momentum after new listings hit the market in the last few weeks. 62 Birchwood Lane, offered at $3,995,000 on January 11 is now in contract, 24 days after coming to the market. Sagaponack has also gained some activity after new listings came to the market, but is at risk of a standstill if something doesn’t happen here in terms of existing listing pricing or more new listings to market.
East Hampton has strong activity, but is also showing signs of stalling, as in contract activity in declining. Only one new listing came to market in the last four weeks. 12 High Point Road, a well priced pre-construction offering, listed at $3,295,000 is still available, but we don’t believe it will be for much longer. “We have 5 showings scheduled for this weekend and have had a solid number of inquiries since bringing the listing to the market,” explained Bryan Midlam of the Midlam Ryan Team of Compass. “Slated for fall 2021 completion, it will embody a classic Hamptons style while also bringing something fresh and modern to the landscape,” Midlam continued.
New listings have outpaced in contract activity since the start of 2021. Bridgehampton has had new listings come to market but none have yet gone into contract. Wainscott and Montauk have been in hibernation with no new listings, no in contract activity, and no sold listings coming through in the last four weeks.
East Hampton and Southampton have seen some activity but are at risk of a standstill as well if sellers and buyers can’t start coming together. Sag Harbor and Sagaponack have seen some activity in new listings and in contract, but are similarly at risk of a lull. Properties need to start going into contract in Sag Harbor and new listings are needed in Sagaponack to keep the pace in these areas.
Similar to the $5-9.999M market, overall new listings have far outpaced in contract activity. East Hampton, Montauk and Sag Harbor are at a standstill, with no new listings, no in contract activity, and no sold listings coming through in the last four weeks.
In Wainscott, 129 & 133 Sayres Path came on the market last week, offered at $11,500,000, just after 141 & 145 Sayres Path closed according to listing agent Stacy Cohen of Saunders, at $16,500,000. Stacy represents both properties. “141 & 145 was a spectacular family compound. 129 & 133 Sayres Path is a blank canvas 3 acre lot to create your dream home. Sayres Path in Wainscott is the hidden jewel for South of the Highway in the Hamptons,” Cohen shared.
Southampton, Sag Harbor and Sagaponack have had new listings come to the market, but they have not yet prompted contract activity. Water Mill has had listings go into contract; however, no new listings in the last four weeks has put this area at risk of freezing up.
In Bridgehampton, 162 Jobs Lane went into contract two weeks ago, 228 days after being first listed, but buyers and sellers here will need to start accommodating each other for momentum to continue. After being completely quiet in 2021 so far, Amagansett saw 24 Stony Hill Road go into contract last week. More inventory in Amagansett is needed to get this part of the market moving again.
If history is any indicator, contract activity should start to pick up across price points and areas after February; however unusual times call for open minds and regular check-ins. We are tracking each area and price point’s market movement on a weekly basis at Hamptons Market Data and will certainly share our findings as we learn how 2021 will compare to years past.
Adrianna Nava, founder and president of Hamptons Market Data, is a real estate investment strategist who specializes in The Hamptons real estate market. To read her previous column, click here.