Hamptons real estate prices break records as New York City wealthy flee to the beach

Prices in the Hamptons hit records in the third quarter, as extra wealthy New Yorkers fled the metropolis to purchase houses on the beach, in accordance to a brand new report.

The common gross sales worth in the Hamptons soared 46% in the quarter to simply over $2 million, in accordance to a report from Douglas Elliman and Miller Samuel. The median gross sales worth jumped 40% to $1.2 million, which is now increased than Manhattan’s median gross sales worth of $1.1 million.

“I’ve never seen a market like this,” stated Gary DePersia, a Hamptons dealer with Corcoran. “It doesn’t show any signs of slowing down.”

The surge in the Hamptons comes as lots of of hundreds of New Yorkers fled the metropolis throughout the coronavirus pandemic and looked for houses with more room outdoors the metropolis. While it is unclear what number of New Yorkers will return to the metropolis, and the way the flight of the wealthy will have an effect on New York’s financial system long run, the pandemic has dramatically redrawn the city real estate panorama. The Hudson Valley, western Connecticut and the Hamptons all noticed a surge in gross sales in the third quarter, whereas Manhattan noticed a 46% drop in gross sales.

Jonathan Miller, CEO of Miller Samuel, stated one enduring pattern of the pandemic shall be the rise of the “co-primary residence,” the place households spend equal time in the metropolis and at their rural or resort houses, since they will now work and even attend faculty remotely.

“It’s not a second home anymore,” he stated. “It’s on equal footing.”

While the Hamptons has lengthy been the high-priced weekend escape for the New York wealthy, it has shortly turn into the year-round bunker for the New York elite throughout Covid. Normally, the eating places and outlets empty out by Labor Day. But DePersia stated eating places and bars are nonetheless full and lots of households aren’t certain when or if they may return to the metropolis.

Beach houses are seen on September 30, 2020 in Southampton, New York.

Kena Betancur | AFP | Getty Images

“They want to get back to their lives in Manhattan,” he stated. “But no one knows when that will be. “

Home gross sales in the Hamptons stay sturdy in any respect ranges, brokers say, from underneath $1 million to greater than $20 million. Miller stated that 15% of houses bought in the quarter went for greater than the asking worth, doubtless the results of a bidding conflict. That complete, he stated, is about twice the historic common for the Hamptons.

Last yr’s third quarter noticed document excessive stock as a results of modifications to the remedy of state and native taxes, which damage all areas of New York real estate. Now, stock is shrinking quick and there are ready lists for newly constructed houses. Listing stock of luxurious houses in the Hamptons fell 43% in the quarter.

The costliest sale in the quarter was a 3-acre property at 38 Two Mile Hollow Road in East Hampton, with a tennis court docket, pool and eight,000-square-foot home, that went for $24 million.

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