While the weather out east has been struggling to heat up, the real estate market on the East End has been doing the same thing. Fewer closings and more price cuts reveal a market that has cooled significantly compared to last year, according to the May 2019 Out East Market Update.
Recorded Sales Drop Sharply Year Over Year
The number of homes that entered contract or sold fell by 67.6% compared to last year, with 46 homes selling this May, while 142 sold in May 2018. But while the number of homes sold has dropped, contract and closing prices for those homes were up. The median recorded sales price of the 46 homes sold in May 2019 was $1,472,500, up 13.3% from last year’s median of $1,300,000.
The number of sales decreased in all East End hamlets except for Amagansett, where the market remained steady, with six home sales in May, the same as last year. Amagansett was also home to the most expensive sale of the month. This 7-bedroom, new-construction property went into contract just before the end of May for nearly $7 million, more than three times the median home price in the hamlet.
Nearly 1 in 3 Sellers Dropped Their Asking Price
Hamptons sellers took notice of the market slowdown in May, and more offered discounts as a result. In May, 29.7% of Hamptons listings had a price cut, some 4.1 percentage points higher than last year.
Buyers looking for discounts had the best chance of finding one them of the Shinnecock Canal in Hampton Bays, where the share of price cuts was the highest in the Hamptons at 62%. Montauk also offered discounts as well — more than 1 in 3 (39%) of homes for sale in the area received a price cut.
“There is a lot of hesitation from buyers across the country right now, especially in some of the most expensive areas, like the Hamptons, and especially for vacation homes,” says Out East General Manager Matt Daimler. “New tax laws and uncertainty about where the market is headed are causing some potential buyers to think twice about investing in a home on the East End.”
“Meanwhile, sellers are getting impatient, and many of them are making concessions to strike a deal with buyers who are on the fence. We expect that the price-chopping isn’t over, though, with more discounts to come this summer as sellers try to stand out from the pack and attract a buyer.”
For more Hamptons housing market data and analyses, visit our Insights section.
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