In the Hamptons, there are currently 146 new construction homes on the market for sale from Southampton to Montauk, and 45 are contracted to trade. In 2022, 93 new construction homes sold on the South Fork of Long Island, which is a 29% decrease from the 130 new construction homes sold in 2021.
Due to supply constraints that delayed many new builds, the median days on market increased 140%, from 120 days in 2021 to 305 days in 2022.
The median sold price for new construction homes increased eight 8% in last year, a 3% larger increase in price than the overall Hamptons market, which increased 5% in 2022. The median sold price per square foot increased 11% in 2022, from $847 per square foot in 2021 to $940 per square foot, or a $4.6 million median sold price, in 2022. The average sold price for new construction in 2022 was $1,014 per square foot.
Overall, new construction market activity decreased last year. Despite this, new construction listings were 34% less negotiable than in ‘21. The overall market was only 8% less negotiable, evident in the high value placed on a new build in the Hamptons and the continued increase in overall pricing, despite new inventory trending up.
The highest price per square foot of new construction to sell in the Hamptons was the property at 146 Foster Crossing in Southampton at $16.25 million, which comes to $2,700 per square foot.
Paul B. and Lauren B. Young, of Palace Gardens Terrace, one of London Kensington’s premier residential addresses, built the house after selling their remodeled New York City apartment in 2014 to Rory Tahari, the ex-wife of Elie Tahari, for $7.35 million.
The average price per square foot of new construction sold can be seen with the sale of 43 Noyac Harbor Road in Sag Harbor for $3.65 million or $1,017 per square foot. The 3,586-square-foot house was designed by Jason Thomas Architect and constructed by Witty & Gazda.
The median sale was of the new build at 30 Castle Hill Court in Southampton at $1.995 million, or $949 per square foot. No notable builder, designer, or owner was featured.
The difference between a house achieving the median price per square foot or beyond is something, or someone noteworthy included in the project. The data show that the way a house is presented online also makes a difference when selling new construction in the Hamptons.
Marketwide, the median price per square foot was $931 with a $1,115 average price per square foot. This comes in higher than the average new construction price per square foot because properties like 1100 Meadow Lane in Southampton, 35 Potato Road in Sagaponack and 323 Marine Boulevard in Amagansett achieved over $6,000 per square foot, which skews the numbers when comparing new construction to the overall Hamptons market.
One of the lowest sold prices per square foot marketwide, the property at 7 Lake Drive North in Noyac was nearly-new construction. Built in 2015 and sold in 2016 for $629,000, or $227 per square foot, it again traded in 2019 for $840,000, or $303 per square foot, a 9 % discount from its original list price.
Despite its proximity to Noyac Road, the 2,772-square-foot home sold for $1.205 million, or $435 per square, in 2022, a 44% percent increase from its previous trade and 0.8% above what it listed for in November of 2021. The property value increased almost 92%percent in the six years since it was built, even with one down market cycle in 2018-19.
Despite market conditions, over time, Hamptons real estate tends to perform fairly well, especially when well constructed.