Thirty-two percent of all listings that went into contract last week were new construction.
Move-in ready homes are continuing to draw the most attention and activity. Some are even being offered fully furnished, making them even more appealing to buyers looking to use or rent right away.
Most new construction listings tend to start with the highest possible list price, but ultimately these sellers can be some of the most negotiable, depending on which phase of construction the deal is made. How much the developers invest in their projects is unknown to the public. Being a successful developer in the Hamptons is both an art and science. Knowing which locations and improvements will yield higher returns than others, at different times, and optimizing costs in a generally expensive area are crafts.
Patience tends to pay, but so does quick turnaround — making new construction win-win right now. The projects that stand to gain the most of last week’s contract activity, if they were efficient in construction costs, are on the high and low end of the investment range represented. Though standing potentially to gain the least, last week’s median new construction in contract deal, last asking $3.495M, managed to get flipped in just over a year from the original property purchase. We all know that time is money, so regardless of the lower percentage increase, the profit made was realized quickly.
Three of the seven new construction deals were listed in the $3-4.999M price point.
The $3-4.999M market had a very strong week overall, making up 45% — or 10 of the 22 listings — that went into contract. Montauk, Sag Harbor, Southampton and Water Mill all saw increases in contract activity, with Bridgehampton staying strong throughout 2021. Amagansett, East Hampton and Sagaponack experienced declines in contracts signed.
Even though contract activity exceeds new listing inventory in these areas, new listings to market generate an increase in momentum on other relevant inventory. There has been low to no new inventory in the areas that saw declines. Listings will sit until prices reduce, a new sold price comes through justifying a higher price, or a new listing comes on the market spurring activity.
“We had multiple offers and it was in contract in 4 or 5 days,” explained Jason Schommer of The Corcoran Group who listed the property. “There is huge interest in finished homes. The fact that 137 Swamp was fully completed with the final Certificate of Occupancy issued meant the buyer could close ASAP, guaranteeing them occupancy by spring,” Schommer continued.
Swamp Road has four listings in contract right now. Five properties have sold on Swamp Road since the start of the pandemic. This activity accounts for 16% of Swamp Road’s privately owned properties.