Welcome to the Hedges Market Report! Every month we will poll local real estate agents and others in the industry about their sense of the market and how their business is doing. The following is the results of the January survey; at the end of the post is the new survey. In case you’re wondering, we do ask new questions each month, as well as the usual state-of-the-market queries.
The first question was “How do you feel about your business in the past month compared to the same time last year?” 70% replied “Good. I did well.” 20% replied that business was about as busy as usual and 10% thought business was terrible.
Next up was “How do you feel about your business in the upcoming month?” 70% were optimistic, 10% pessimistic and 20% neutral.
To the question, “Are buyers still obsessed with new builds?” 40% thought that new was more important than anything else, even in a less desirable location; 40% thought that new was important but location was most important; and 20% said no.
We then asked, “In the December poll, one agent wrote, ‘RE in the Hamptons is generally swinging towards short term rentals.’ Do you agree? Is this something that local governments should acknowledge?” 60% agreed but did not think local governments should ease rental restrictions, while 30% did think local governments should ease restrictions. The rest didn’t pay attention to rentals.
Next up was “What is your sense of the market as a whole?” Numerous responses concerned the new tax laws. “Too early to tell w the new tax reform;” “Worried about tax changes;” and “With new tax law, a secondary home market is going to be more discretionary for buyers. Rentals should pick up.”
Others are more sanguine. “Fairly matched, slight concern over NY apartment sales spillover.” “Under a million are quick to sell, but regardless of price, buyers are always looking for a ‘good deal.'” “I see the market as a healthy one! If priced right, I can bring you a buyer rather quickly!”
The last survey question asked if there was anything else polltakers would like to add. “Hoping buyers’ jitters will ease with new tax reform and sellers will be realistic in pricing their home to sell. Stock market is strong and help keep the home sales strong.”
“Many sellers demand unrealistic prices, and too many brokers promise those inflated sales prices to get a listing. This results in properties sitting on the market for too long.” And: “10K prop tax max=no good.” Also: “East Hampton Village, Fringe, NW Woods and Springs will continue to outperform.”
“At the moment, supply covers at least one year of demand. After Wall Street bonuses are divulged, we will find out whether Wall Street will make a dent in our supply.” “A stock market correction could be beneficial for Hamptons real estate. With a 25% rise in the stock market over the past year, prospective buyers have been reluctant to take their money out of that market to put it into Hamptons real estate. A correction could change that somewhat.”
Thanks to everyone who participated!
Here’s a link to the February questionnaire–don’t worry, it’s very short and fast. Remember, it’s entirely anonymous, so please be honest. Thanks!
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Got an opinion? There’s room for entering any concerns you have on the poll, or feel free to drop us a line. Thanks for your time.
