Montauk Life Montauk Life August 2017 - Page 70

BACK FROM THE BRINK ?

REAL ESTATE : THE STATE OF THE MARKET

BACK FROM THE BRINK ?

Over the past nine months there ’ s been a undercurrent of uncertainty , some even might have said fear , about the overall state of the East End real estate market . More than a feeling , the past 2 quarters showed a drastic slowdown in sales and dollars in almost every corner of the Hamptons .

Thanks to the knowledgeable folks at Town and County Real Estate we had numbers to ponder . Take a gander at the chart below and you ’ ll know what I mean .
If you care to total those figures up you get a very clear picture of where the local real estate market was going over those 6 months . Down across the board roughly 25 % in homes sold and a whopping 40 % decline in actual dollar sales .
Now in my many , many years on the old real estate beat I ’ ve seen drops bigger than that . Anyone remember 2008 ? What some feared was that we were headed for another event , perhaps not as bad , but a prolonged drop in activity in the single largest economic sector of the East End economy .
Thankfully , that ’ s not the case as the latest numbers from Town & Country point out .
HAMPTON HOME SALES 2016-2017
YEAR HOMES SOLD SALES FIRST QUARTER 2017 240 $ 484M FIRST QUARTER 2016 293 $ 664M
FOURTH QUARTER 2016 246 $ 503M FOURTH QUARTER 2015 339 $ 893M * Figures supplied by Town & Country Hampton Realty
Whew , those are a relief to nearly every agent in every office from Montauk to Westhampton . Well , except Montauk , a unique subject we ’ ll address in the next piece . Otherwise , there ’ s a bounce in many a real estate agent ’ s step these days with the prospect of a better overall 2017 than we ever imagined just a few short months ago .
THE BIG GUYS
If there ’ s one thing gleaned from a closer look at the overall numbers that ’ s a bit troubling it ’ s the ripple effect a few extra-large sales can have on the overall numbers . You ’ ll note we did sell fewer homes in this quarter than last , but brought in more than $ 150 million more . How do you do that ? By selling a few really , really expensive homes .
Town & Country breaks down sales into a variety of price points for comparison with the larger breaks coming from $ 3.5 million and up . In that range there were a total of 53 homes sold in 2017 above $ 3.5 million vs . 43 in the second quarter of 2016 . More to the point , there were 4 homes sold at $ 20 million and above in 2017 and none , that ’ s zero my friend , in 2016 . Those four homes alone brought in an additional $ 100 million dollars in the 2017 quarter .
That ’ s more than 65 % of the additional monies earned in this quarter over the 2016 . All that from roughly 1 % of the overall sales in 2017 . More to the point , if you take the average price of homes in the price points of $ 3.5 million and above you get the following results :
HAMPTON HOME SALES 2016-2017 $ 3.5 MILLION & ABOVE
YEAR HOMES SOLD SALES
SECOND QUARTER 2017
SECOND QUARTER 2016
54 $ 467M
43 $ 295M
* Figures supplied by Town & Country Hampton Realty
If true that means the value of those homes sold above $ 3.5 million represented 60 % of the total sales in the second quarter of 2017 while that same slice of the pie in 2016 represents 46 % of that pie . As for the rest of the sales , they break down as follows :
HAMPTON HOME SALES 2016-2017 $ 0 TO $ 3.5 MILLION
YEAR HOMES SOLD SALES
SECOND QUARTER 2017
SECOND QUARTER 2016
295 $ 324M
312 $ 341M
* Figures supplied by Town & Country Hampton Realty
So , all the gains of the current quarter are the result of not just homes above $ 3.5 million but a small section of that upper end . And why does this matter ? After all , we seem to have avoided another real estate slump , didn ’ t we ?
Yea , and thank the good Lord above for that . No one , but no one wants to see the economic engine that drives this train sputter to a halt . But it would be nice if we weren ’ t so dependent on a few , over the rainbow sales to make the picture rosier . We simply don ’ t see sales that large often , and even when we do , they only benefit a few , very good , and maybe slightly luckier than your average agent , sales people .
With that in mind may the wind stay at our backs and the sales continue to grow . The whole East End depends on it .

I ’ LL MATCH YOUR $ 140 MILLION AND RAISE YOU $ 10 !!

In a world of uber-homes two stand well above the pack . Both located in the

heart of the estate section on Southampton Village ’ s pristine ocean beach , these two homes not just break the $ 100 million dollar price point they shatter it . The newest and most expensive addition to the Hamptons house pool is on Meadow Lane where it commands a compound of 3 large lots stretching from ocean to bay with a total of 14 plus acres . The main residence is a palatial 12,000 sq . ft . home with 12 bedrooms and enough amenities to make any potential potentate comfy . Especially geared to sports enthusiasts it has an indoor pool , tennis court and house , two golf greens and golf house . Of course that 700 ’ of almost private oceanfront makes a rather nice swimming hole , too .
Listed with Sotheby ’ s Harold Grant is a full throated , $ 150 million dollar home . The first to hit that number in the area and one of the 5 most expensive homes in America .
Just around the corner on Gin Lane , “ Le Dune ” is a classic , turn of the 20th century , shingle cottage . Set on 3.7 manicured acres it stands a full 4 stories , overlooking 400 ’ of sparkling oceanfront . With 22,000 sq . ft . of living space it is a showcase of master craftsmanship , materials and décor . With 2 custom gunite pools and a sunken , all-weather tennis court , you can play here all day long .
Also listed with Harold Grant the price tag here is a somewhat more modest $ 140 million . Ready to show either to the right party you can reach Harold at 631- 227-4913 . He ’ ll be very happy to hear from you .
70 | Montauk / Hampton Life | August 2017 www . MontaukLife . com
REAL ESTATE: THE S TATE OF THE MARKET BACK FROM THE BRINK? O ver the past nine months there’s been a un- dercurrent of uncertainty, some even might have said fear, about the overall state of the East End real estate market. More than a feeling, the past 2 quarters showed a drastic slowdown in sales and dollars in almost every corner of the Hamptons. Thanks to the knowledgeable folks at Town and County Real Estate we had numbers to ponder. Take a gander at the chart below and you’ll know what I mean. If you care to total those figures up you get a very clear picture of where the local real estate market was going over those 6 months. Down across the board roughly 25% in homes sold and a whopping 40% decline in actual dollar sales. Now in my many, many years on the old real es- tate beat I’ve seen drops bigger than that. Anyone remember 2008? What some feared was that we were headed for another event, perhaps not as bad, but a prolonged drop in activity in the single largest economic sector of the East End economy. Thankfully, that’s not the case as the latest num- bers from Town & Country point out. HAMPTON HOME SALES 2016-2017 YEAR HOMES SOLD SALES FIRST QUARTER 2017 240 $484M FIRST QUARTER 2016 293 $664M FOURTH QUARTER 2016 246 $503M FOURTH QUARTER 2015 339 $893M * Figures supplied by Town & Country Hampton Realty Whew, those are a relief to nearly every agent in every office from Montauk to Westhampton. Well, except Montauk, a unique subject we’ll address in the next piece. Otherwise, there’s a bounce in many a real estate agent’s step these days with the pros- pect of a better overall 2017 than we ever imagined just a few short months ago. THE  BIG GUYS If there’s one thing gleaned from a closer look at the overall numbers that’s a bit troubling it’s the ripple effect a few extra-large sales can have on the overall numbers. You’ll note we did sell few- er homes in this quarter than last, but brought in more than $150 million more. How do you do that? By selling a few really, really expensive homes. Town & Country breaks down sales into a vari- ety of price points for comparison with the larger breaks coming from $3.5 million and up. In that range there were a total of 53 homes sold in 2017 above $3.5 million vs. 43 in the second quarter of 2016. More to the point, there were 4 homes sold at $20 million and above in 2017 and none, that’s zero my friend, in 2016. Those four homes alone brought in an additional $100 million dollars in the 2017 quarter. That’s more than 65% of the additional monies earned in this quarter over the 2016. All that from roughly 1% of the overall sales in 2017. More to the point, if you take the average price of homes in the price points of $3.5 million and above you get the following results: HAMPTON HOME SALES 2016-2017 $3.5 MILLION & ABOVE YEAR HOMES SOLD SALES SECOND QUARTER 2017 54 $467M SECOND QUARTER 2016 43 $295M * Figures supplied by Town & Country Hampton Realty I’LL MATCH YOUR $140 MILLION AND RAISE YOU $10!! I n a world of uber-homes two stand well above the pack. Both located in the heart of the estate section on Southampton Village’s pristine ocean beach, these two homes not just break the $100 million dollar price point they shatter it. The newest and most expensive addition to the Hamptons house pool is on Meadow Lane where it commands a compound of 3 large lots stretching from ocean to bay with a total of 14 plus acres. The main residence is a palatial 12,000 sq. ft. home with 12 bedrooms and enough amenities to make any potential po- tentate comfy. Especially geared to sports enthusiasts it has an indoor pool, tennis 70 | Montauk / Hampton Life | August 2017 If true that means the value of those homes sold above $3.5 million represented 60% of the total sales in the second quarter of 2017 while that same slice of the pie in 2016 represents 46% of that pie. As for the rest of the sales, they break down as follows: HAMPTON HOME SALES 2016-2017 $0 TO $3.5 MILLION YEAR HOMES SOLD SALES SECOND QUARTER 2017 295 $324M SECOND QUARTER 2016 312 $341M * Figures supplied by Town & Country Hampton Realty So, all the gains of the current quarter are the result of not just homes above $3.5 million but a small section of that upper end. And why does this matter? After all, we seem to have avoided another real estate slump, didn’t we? Yea, and thank the good Lord above for that. No one, but no one wants to see the economic engine that drives this train sputter to a halt. 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