Last week, closings played catch up coming off of the 4th of July holiday, with an 89% increase, from 9 to 17 homes sold; yet the last two weeks combined still don’t equal the weekly total of three weeks ago. Sold listings have been trending down, but should pick up again soon as more of April’s deals close. There are still 55 properties that went under contract in April waiting to close, as well as 99 properties still in pending status that went under contract between the start of COVID and the end of March.
As recent news articles have indicated, and from our conversations with agents, holdovers seem to be a big part of this story. If you know of, or have experience with a holdover tenant, or you are one in the Hamptons, this author would love to hear from you. Confidentiality guaranteed.
The number of contracts signed increased 30% (from 10 to 13) and new listings increased 20% (from 15 to 18). Days to contract remained steady at 155 days. Though seemingly low for the Hamptons region, which before COVID trended around 240 days to contract, June’s signed contracts occurred in a median 71 days.
The market is settling, and the data show that properties that were overpriced and didn’t sell during the peak of the COVID market are beginning to face the music. This is leading to the uptick in days to contract within the last two weeks. While we are still compiling data for July to tell the full market shift story for each price point and area, the luxury market already paints a clear picture..
The property at 35 Morrison Lane in Water Mill came on the market in 2018 for $23 million and reduced its price a couple of times, most recently at the end of April with a $2 million price reduction. It went under contract on July 1 with a last asking price of $16.5 million.
Campbell Stables at 6 West Pond Drive in Bridgehampton was first listed in 2018 for $40 million, reduced in 2019 to $35 million, again in the fall of 2020 to $25 million, and most recently in May to $19.995 million. It found a deal on July 14.
As revealed in last week’s Market Update: Activity Slows in Hamptons Real Estate as Buyer – Seller Tension Mounts, negotiations have gotten more complex and the brokerage community reports a drop in the number of bidders for even the most desirable properties. By Hamptons standards, there are still plenty of buyers as multiple properties are receiving bids from more than one buyer. Yes, there are still plenty of buyers, but at what price?
Adrianna Nava is a Hamptons real estate market and transaction expert. She is an associate real estate broker with Compass and founder of HamptonsMarketData.com