Overall, supply on the South Fork declined -1.8% from January to February 2021. The absorption rate and odds of selling also declined overall. Given contract activity continues at pace with all time highs, these declines indicate a continued decline in desirable listing inventory.
In contract activity outpaced new listings to market in all areas except Amagansett. In contract activity also outpaced new listings to market in the less than $5M price points, but new listings are outpacing listings going into contract for properties listed above $5M. That said, contract activity has increased in all price points and +31% in the market overall, compared to January 2021.
The median sales price increased to $1,956,250, a +35% increase year over year and +6% when compared to January 2021. The median listing discount decreased year over year to -3.32%, but 40% of listings that closed in February 2021 still went for -5% or more off of the list prices, almost on par with January’s 39%.
Days on market are down -43% year over year from 310 in February 2020 to 177 in February 2021. However, the days on market have stayed stable month to month, with a 2% increase from 174 days in January to 177 in February. That said, well priced new listings are going into contract in an average 58 days from list to contract signed. This is a -33% decrease from January’s 77 days for relevant listings.
New listings declined -24% month over month. All price points saw a decline in new inventory, except the $10M+ market which saw a +56% increase in new listings from January to February 2021. However, the $10M+ price point also saw a +125% increase in contract activity.
In contract activity increased for all price points, but declined in Amagansett and Montauk, where listing inventory remains a challenge for buyers. Water Mill contract activity is holding steady so far in 2021, but Water Mill has no inventory for less than $1.5M and only saw 4 new listings, all priced above $4.5M, come to the market in February.
The determining factor for market movement continues to be the shortage of appropriately priced available inventory. The February 2021 Market Report & Trends detail specific area and price point performance.
Market Trends Update
For more market trends, Hamptons Market Data.
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.
