2021 Q4 Hamptons Real Estate Market Reports Are In

Douglas Elliman

The South Fork

“Listing inventory continued to fall short of demand, keeping price trends well above pre-pandemic levels.”

• Average sales price and median sales price reached the highest level in fifteen years
• Listing inventory fell annually at the fastest annual rate on record to a new fifteen-year low
• Months of supply fell to the fastest pace in fifteen years, more than twice the pace of pre-pandemic levels
• For the second straight quarter, more than one out of four closings in the quarter sold above the last asking price
• The number of sales greater than or equal to $5 million was the second-highest on record
• Condo median sales price rose to the second-highest on record as the market pace was the fastest on record
• Single family price trend indicators reached new highs along with the market share of bidding wars
• Luxury market share of bidding wars was the highest on record as listing inventory fell in seven of the past eight quarters

The North Fork

“Price trend indicators reached new highs while the lack of adequate listing inventory held back sales.”

• Average sales price reached a new high, and median sales price reached their highest levels reached in sixteen years of tracking
• Listing inventory fell sharply year over year for the eighth straight quarter to a new low, creating the second-fasted paced market since 2005
• Nearly 4 out of ten closings in the quarter sold above the last asking price
• The number of sales greater than or equal to $2 million was the third-highest on record
• For the second straight quarter, at least half the condo closings in the quarter sold above the last asking price
• After eight quarters of year over year declines in single family listing inventory, supply fell to the second-lowest on record
• The luxury market moved at the fastest pace in a decade of tracking

Saunders & Associates

To read the Saunders & Associates 2021 Q4 report, go here.

Sotheby’s International Realty

According to the Long Island Real Estate Report, sales in the Hamptons market during the fourth quarter of 2021 reflected a direct continuation of the slowing trend in the number and volume of sales from the extraordinarily high rate of activity set in motion in 2020 through the first half of 2021. Compared to the fourth quarter of 2020, total sold units across the entire market were down 28%, a change identical to what was experienced in the prior quarter. This reduced rate was consistent across all Hamptons hamlets and price points.

The average sale price held steady for most hamlets except for substantial increases in Amagansett and Montauk at $6.8M and Bridgehampton at $8.1M. The median sales price for the Hamptons market, overall, remained even across all hamlets. As with the prior quarter, the reduced number of units sold in the fourth quarter was largely due to the decline in available inventory after a year and a half of robust sales. Competition for the remaining inventory remains intense with many transactions resulting from multiple bids.

In 2022, Sotheby’s International Realty – Hamptons Brokerages are uniquely positioned to service the needs of discerning buyers, sellers, and renters. A global luxury leader, Sotheby’s International Realty has approximately 1,000 offices in 75 countries and territories worldwide. In the Hamptons, Sotheby’s International Realty has offices located in Southampton, Bridgehampton, and East Hampton that support 140 agents who are trusted real estate advisors.

Town & Country Real Estate

The South Fork

“It doesn’t happen often, but occasionally the statistics shock ME! This is one of those times. Internally Town & Country Real Estate had one of our best quarters in Q4 2021 — but the over-all market statistics show a completely different story — one that requires closer scrutiny. The last three months of 2021 was radically different from the same period in 2020. In fact, all 12 individual markets monitored by Town & Country were in the RED for the Total Number of Home Sales as well as Total Home Sales Volume. Let’s factor in that the last three quarters of 2020 were like a feeding frenzy — especially Q4 2020. That said, there still leaves much to be explained when you see only 297 homes trade hands 4Q 2021 vs 608 homes in 4Q 2020, a drop of over -50%. Total Home Sales Volume sank -41% year over year from $1.5B to $902M. Let’s examine some individual markets for more insight. Looking at All Hamptons Markets Combined the home sales activity for the last three months of 2021 becomes clear. There were half as many homes changing hands and -41% less Total Home Sales Volume but the Median Home Sales Price rose 10%. If you look closely at the eight price ranges monitored by Town & Country you see a significant shift to higher priced homes. The price range with the most home sales was the $1-1.99M with 84 deals closing in the quarter. The -78% fewer home sales under $500K is certainly not indicative of less demand, but rather entirely due to lack of inventory. Is this an indicator of the trend in front of us? Time will tell.”

The North Fork

“Home sales in the last three months of 2021 on our beautiful North Fork closed out with a resounding thud. All four markets monitored by Town & Country Real Estate experienced dramatic declines in the Total Number of Home Sales down -50% to as high as a drop of -67%. This resulted in the Total Home Sales Volume declining similarly. The Median Home Sales Price buoyed the report as it increased nearly 17%. Looking at All North Fork Markets Combined, and the picture is crystal clear. Nearly -62% fewer homes traded hands which resulted in -58% less Total Home Sales Volume all while the Median Home Sales Price rose 17.3% to $885,000. Clearly this is not a function of a lack of demand, but rather a severe lack of inventory.”

— Judi Desiderio, CEO

Corcoran

“Even with inventory hitting record lows, the East End real estate market is a hot spot for buyers who remain committed to securing their piece of this picturesque part of the country. 4Q 2021 sales on the South Fork were the second-highest for any fourth quarter on record and due to a 26% jump in average price, sales volume on the North Fork increased 8% annually.

While contracting supply has led to price increases across all property types, we’re still seeing a significant shift in the luxury market. The share of luxury sales over $6M on the South Fork increased to over 90%, while the North Fork’s top 10% of sales saw a greater share over $2M this quarter. Interest in the exclusive Hamptons lifestyle isn’t going away anytime soon and I anticipate we’ll see prices continue to rise well into 2022.”

— Ernie Cervi, Regional Senior Vice President, East End

The South Fork