What? You want to wait?
Dickens once said…in 1859, “It was the best of times, it was the worst of times, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredibility, it was the season of light, it was the season of darkness, it was the spring of hope, and it was the winter of despair.”
Today when talking about the real estate market Out East, we can say:
“It was the best of times, it was the better of times, it was the age of high values, it was the epoch of low interest rates, it was the epoch of non-contingent, it was the season of pool and tennis, it was the spring of water views, it was the winter of satisfied sellers.”
With fewer homes on the market, prices continue to rise to new highs both on the North and South Forks. For the third consecutive quarter, Manhattan and East End sales have been on a record-setting tear. The total was the most recorded within a first quarter over thirty-three years of tracking. As the market returns to normal seasonality, the excess demand overpowering listing inventory was partially offset by the seasonal rise in supply, and sellers pulled in from renewed price growth. With rapidly rising sales and sliding listing inventory from the year-ago, the quarter resulted in a fast-moving market pace.
An article published by The Real Deal recently reflects the 2022 rental market is overpriced and is down overall from last year. Readers have begun to think “Why this drop when the sales market is doing so well?” Let’s remember that many luxury properties have been listed with the owner’s mindset of, “If we don’t get our price, then we won’t rent.” Folks will do what they feel is best for themselves. In addition, many buyers purchased within the last year hoping to rent and recoup the handsome prices that they paid for their purchase.
For sales, looking at the entire Hamptons area-east and west of the Shinnecock canal, all price range categories experienced decreases in the first quarter of 2022 — except for those properties at about five million dollars — a reflection of the shrinking availability for the lower end of the market as well as the sustained demand for the luxury market. The ultra-higher end of the market, above ten million experienced the only increase compared to the first quarter of 2021. There were twelve sales above ten million in the first quarter of 2022, while only 4.5% of the total volume of sales accounted for 38.8% of the total dollar volume for the year.
Both buyers and sellers can expect a faster transaction. The seller will receive a better price for their home. And for the buyer, although sales prices have increased, interest rates are still at a very reasonable low. Some sellers say they want to wait. Wait? Why? For prices to drop? Some buyers say they want to wait. Wait? Why? For interest rates to rise?
At the end of the day, it all works to sell or to buy in this market now — to the advantage of all. Access to timely information is key. For now, we wait to see how the season finally rolls out.
A highly accomplished real estate veteran with over 22 years in residential sales, Mary Anne Fusco is among the top-producing brokers at Douglas Elliman. She has extensive experience working in the New York City and East End markets, and offices in both Manhattan and Bridgehampton. To learn more about Mary Anne Fusco, click here.
