As expected, the 2nd Quarter 2008 statistics for Home Sales Activity reflects reductions in the # of Sales in each of the 11 markets monitored by Town & Country Real Estate with offices throughout Hamptons and North Fork.
The greatest drop in the Number of Home Sales was in Amagansett at 71% from 31 to 9 Home Sales 2nd Quarter 2007 to 2nd Quarter 2008, yet conversely, the Median Sales Price rose 5% year to year to $2M.
In fact, closer scrutiny of the 3 criteria Town & Country monitors reveals that while the Number of Home Sales may have dropped in every market, the Median Sales Price rose in 5 of the 11 markets.
Southampton Village Median Sales Price more than doubled 2nd Quarter 2008 compared to 2007 to $4.262M from $1.95M. Looking at the different price categories within Southampton Village, we find steep declines in Sales Under $2M. Is this a function of market conditions or availability of product? We believe it reflects the growing difficulty in finding a Village home under $1M.
Westhampton (which includes Westhampton Beach, Hampton Bays, East Quogue , Quogue and Quiogue) is the market we usully see the highest Number of Home Sales and for the 2nd Quarter 2008 that remains the case with 92. Though this is a 44% decline from the same time period from the previous year.
On a positive note, the Montauk market saw a 36% spike in Median Sales Price from $900,000 in 2nd Quarter 2007 to $1,225,250 in 2nd Quarter 2008. Montauk has been enjoying its time in the sun in 2008 with a couple of high profile of home sales and some new commercial additions.
The Hamptons ALL Markets Combined illustrated the trend of fewer Number of Home Sales with a decline of 47% which in turn effects the Total Home Sale Volume showing a 52% decline, yet a much lower reflection on the Median Sales Price which dropped 10.5% to $985,000 from $1,100,000 2nd Quarter 2008 and 2nd Quarter 2007 respectively.
This report reflects the Spring sales activity. Fortunately, the summer has been quite busy with sales appointments. Very wise, sophisticated investors are shifting their capital to the safe haven of real estate and recognizing there is no better place than the Hamptons to invest. All the talk about “the bottom” has kept some on the sidelines for now, but those with cash are negotiating their best deal now rather than waiting and possibly losing their top choice or getting into a bidding war.
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