As the summer season winds down and the crisp autumn air settles over the East End, the real estate market in this storied enclave of luxury and leisure finds itself at a crossroads. With cooling inflation, fluctuating interest rates, and an ever-evolving landscape of buyer preferences, industry professionals are closely watching market trends and adjusting their strategies accordingly.
A select group of the area’s top real estate brokers share insights on the current state of the Hamptons property market.
Susan Harrison, Compass
Rates are certainly due to come down, and I think the market could flourish as a result if that happens. Buyers, be prepared and be ready to pull the trigger when you find something. We are seeing more deals being made this month, with sellers and buyers coming to a meeting of the minds. This trend feels like it will continue well into the fall. If a buyer has done their homework and is ready to pounce, they can be successful. Work with a broker who knows the market and then trust them. We do this job 24/7, 365 days a year. We have insights that are invaluable to even the most savvy buyer.
Dominic Couzens. Hedgerow Exclusive
This is less about an area and more of an increase in asset type. Privacy is traditionally one of the most desirable aspects of a property for a purchaser, but I am seeing the demand for it to be much more significant than ever before. Yes, location is still paramount, but I am seeing that even with an excellent setting, many buyers want more anonymity. With the CPI coming down and the lowest it has been in a few years, I think it is more likely than ever that we will get a rate cut. Hopefully, that will be as soon as September. Lower interest rates will, of course, positively impact every buyer at every price point.
Stacey Cohen, Saunders & Associates
Rates are already cooling. More houses will come to the market, and sellers will have the opportunity to sell their houses and get back into the game. Even with higher rates, the market has robust listings at every price point, and lower rates will only continue the trend. Once rates do go even lower, we expect more sellers will be inclined to sell their house and then trade up to their new dream home, maybe even on Shelter Island. For buyers, don’t wait. Our “off” season is the busiest time of the year. Do your homework and study the market with a local agent. Focus on what is most important — there are lots of dream houses in the Hamptons, but the combination of features, size, and location is where you can highlight what you are most excited about. Let yourself enjoy the process by working with professionals.
Mary Slattery, Corcoran
It appears that interest rates will come down, which could help certain buyers in the Hamptons market. Half of all deals in the Hamptons do not rely on any form of financing, which is incredible. But, for some buyers (especially those looking for properties under $2 million), lower interest rates could certainly stimulate buyers to move off the sidelines and search more seriously for a home to purchase. It is important to remember that the Hamptons market is primarily a second and third-home market and our buying is discretionary not a necessity. My suggestion for any buyer is to engage with one experienced agent for a period of time to act as the buyer’s agent for best representation. Agents who actively work in the Hamptons market know the market and can help a buyer navigate the intricacies of purchasing in this market. Buyers should not only research homes of interest but should ask any agent what their value proposition is and how they will work to help them find the best property at the best possible price. Working with a trusted professional is key to a successful transaction.
Jennifer Friedberg, Compass
With cooling inflation, there’s a strong expectation that interest rates will come down, which should positively impact the Hamptons market for both buyers and sellers. While we continue to see predominantly cash deals (often with the option to finance but without a mortgage contingency), lower rates would make borrowing more attractive, expanding the pool of qualified buyers and driving up demand. For sellers, this increased demand can lead to quicker sales and stronger offers as buyers move to take advantage of better financing conditions. That said, the current market dynamics already present excellent opportunities. Buyers who act now can secure properties before competition intensifies, while sellers can benefit from the strong interest we are experiencing. The time to act is now, as the market could shift quickly once rates begin to drop.
As we head toward the end of the season, my advice to potential luxury buyers is simple: don’t wait. While summer may be winding down, the fall in the Hamptons is truly spectacular and an ideal time to further explore the market after a wonderful summer. With inventory still limited, it’s crucial to be proactive in your search. Work closely with a buyer’s agent you trust, who understands your needs, and who can guide you through the process with confidence and expertise.
