Montauk Life Montauk Life August 2017 - Page 72

REAL ESTATE : THE STATE OF THE MONTAUK MARKET

WHICH WAY MONTAUK ??
If you ’ ve read the preceding piece you know the pace of real estate on the bulk of the East End has picked-up over the past few months . To a point where overall numbers are beginning to match the preceding year . The one very interesting caveat to that is dear , sweet , Montauk . Fact is , over the 2nd quarter of 2017 compared to the same period in 2016 Montauk saw a rather dramatic 37 % decline in houses sold and monies brought in through those sales .
Now because Montauk is a rather small slice of the overall East End pie , a decline of that magnitude doesn ’ t have that much of an influence on the overall health of the real estate market . But to those who make a living in real estate there and those looking to buy or sell declines like this do have an effect both psychologically as well as economically .
Funny thing , while the rest of the East End was going through a slump prior to the recent numbers Montauk was the sunnier side of the real estate street . There double sales and money stayed constant at least while the rest of the Hamptons fell as much as 25 % in a single quarter . So , again , what does a three month decline mean ?
As provided by the knowledgeable folks at Town & Country Real Estate , a look at the recent numbers gives us a better picture :
HOMES SOLD IN MONTAUK ( 2015-2016 )
2017 HOMES SOLD TOTAL DOLLARS 2 Quarter 17 $ 22 M 1 Quarter 13 $ 23 M
2016 HOMES SOLD TOTAL DOLLARS 4 Quarter 13 $ 23 M 3 Quarter 17 $ 18 M 2 Quarter 27 $ 35 M 1 Quarter 12 $ 19 M
2015 HOMES SOLD TOTAL DOLLARS 4 Quarter 19 $ 36 M 3 Quarter 8 $ 10 M 2 Quarter 28 $ 37 M 1 Quarter 14 $ 19 M
What jumps out from this for me at least is the surge in 2nd Quarter sales in both 2015 and 2016 but not 2017 . Instead it is more of the same basic 15-20 homes sold here that seems the norm for all three other quarters of those same years . Matter-of-fact if you total these number you get 69 homes sold in 2015 , another 69 homes sold in 2016 and 30 to date in the first half of 2017 . No great leap of faith to assume we ’ ll see somewhere between 60-70 homes sold again in 2017 total , huh ?
As illuminating as numbers may be it ’ s the troops on the ground who know the real story . One I always turn to is Corcoran ’ s John Hegner . A close to 40 year veteran in Montauk she ’ s generally one of the most active agents here as well . Given the numerical slowdown you ’ d think she ’ d see less activity but seems the reverse may be true .
“ So far I ’ ve had an excellent start to this year with 8 home sold and a number of contracts pending !” Considering that sold column includes a beautiful home
Take it from Joan Hegner , things are going just fine in Montauk real estate !
overlooking the ocean on the Old Montauk Highway for $ 7.8 million and an East Lake Drive beauty for $ 4.5 I ’ d say Joan is having a great year !
Even so , she sees cracks in the overall market , too . “ The higher end has been sluggish the past six months , however we ’ ve seen an up-tick in activity of late , with buyers looking , loving the lifestyle and watching the recent price adjustments .” That ’ s one critical part of the puzzle and here is Joan ’ s advice to anyone who really likes a property . “ To not hesitate to engage a seller , you never know what they ’ ll accept until you try .”
AS FOR THE FUTURE ?
“ From the crowds of happy faces I see here , I expect a healthy 3rd and 4th quarter going forward !”
Judi A Desiderio is the President of Town & Country and certainly knows this and most any market in the area

THE UNCOUNTED

One element of Montauk real estate that

doesn ’ t play into the quarterly stats is the number of co-ops that are sold here . And Montauk has a number of large supply of those ranging from the many hotel / co-ops that line the beach like the Royal Atlantic , Surf Club , Ocean Colony , Driftwood to name only a few to more residential units scattered throughout the town .
At the top of the heap is the RESIDENCES AT GURNEY ’ S . Set overlooking the ocean on the Old Montauk Highway this collection of fourteen spacious , residential co-op townhouses are the belle of the ball when it comes to offering a spectacular second home for the discerning buyer with prices that range from $ 5.5 - 8.95 million .
Each spacious unit boats a free-flowing floor plan that opens on an expansive private deck . Large living rooms boast generous fireplaces , kitchens are as well as any . Acknowledging the 2nd Quarter slump she sees this more as a classic economic tug-of-war . “ I can confidently say there is not a lack of demand for Montauk real estate , but there is a huge supply deficiency . This imbalance of supply & demand has caused prices to increase on all products to a degree where we see buyer hesitation .”
In other words , sellers have been kicking prices north while buyers have become price adverse . That chill is what you may see in this 2nd Quarter report . But given the success of agents like Joan and a number of other I ’ ve talked with , the key seems to be finding properties with sellers who really want to sell not just list their homes . As more sellers begin to realize you can only squeeze so much juice out of any single slice of Montauk real estate these numbers should settle back nicely to normal .
exquisitely planned and executed , bedrooms all offer stunning views of the ocean and pristine private beach and each bath is a hand-crafted oasis of marble , tile and stone . Last year 4 were sold in the multi-million range . This year one of the remaining 10 has gone to contract while others are in negotiation . Want to nail one down ? Drop by their sales office or call Saunder ’ s Chris Coleman at 516-445- 1513 pronto !
72 | Montauk / Hampton Life | August 2017 www . MontaukLife . com
REAL ESTATE: THE STATE OF THE MONTAUK MARKET   WHICH WAY MONTAUK?? If you’ve read the preceding piece you know the pace of real estate on the bulk of the East End has picked-up over the past few months. To a point where overall num- bers are beginning to match the preceding year. The one very interesting caveat to that is dear, sweet, Mon- tauk. Fact is, over the 2nd quarter of 2017 compared to the same period in 2016 Montauk saw a rather dra- matic 37% decline in houses sold and monies brought in through those sales. Now because Montauk is a rather small slice of the overall East End pie, a decline of that magnitude doesn’t have that much of an influence on the overall health of the real estate market. But to those who make a living in real estate there and those looking to buy or sell declines like this do have an effect both psychologi- cally as well as economically. Funny thing, while the rest of the East End was going through a slump prior to the recent numbers Montauk was the sunnier side of the real estate street. There dou- ble sales and money stayed constant at least while the rest of the Hamptons fell as much as 25% in a single quar- ter. So, again, what does a three month decline mean? As provided by the knowledgeable folks at Town & Country Real Estate, a look at the recent numbers gives us a better picture: Take it from Joan Hegner, things are going just fine in Montauk real estate! 4 Quarter 13 $23 M 3 Quarter 17 $18 M overlooking the ocean on the Old Montauk Highway for $7.8 million and an East Lake Drive beauty for $4.5 I’d say Joan is having a great year! Even so, she sees cracks in the overall market, too. “The higher end has been sluggish the past six months, however we’ve seen an up-tick in activity of late, with buyers looking, loving the lifestyle and watching the re- cent price adjustments.” That’s one critical part of the puzzle and here is Joan’s advice to anyone who really likes a property. “To not hesitate to engage a seller, you never know what they’ll accept until you try.” 2 Quarter 27 $35 M   AS FOR THE FUTURE? 1 Quarter 12 $19 M 2015 HOMES SOLD TOTAL DOLLARS HOMES SOLD IN MONTAUK (2015-2016) 2017 HOMES SOLD TOTAL DOLLARS 2 Quarter 17 $22 M 1 Quarter 13 $23 M 2016 HOMES SOLD TOTAL DOLLARS 4 Quarter 19 $36 M 3 Quarter 8 $10 M 2 Quarter 28 $37 M 1 Quarter 14 $19 M What jumps out from this for me at least is the surge in 2nd Quarter sales in both 2015 and 2016 but not 2017. Instead it is more of the same basic 15-20 homes sold here that seems the norm for all three other quarters of those same years. Matter-of-fact if you total these num- ber you get 69 homes sold in 2015, another 69 homes sold in 2016 and 30 to date in the first half of 2017. No great leap of faith to assume we’ll see somewhere be- tween 60-70 homes sold again in 2017 total, huh? As illuminating as numbers may be it’s the troops on the ground who know the real story. One I always turn to is Corcoran’s John Hegner. A close to 40 year veteran in Montauk she’s generally one of the most active agents here as well. Given the numerical slowdown you’d think she’d see less activity but seems the reverse may be true. “So far I’ve had an excellent start to this year with 8 home sold and a number of contracts pending!” Con- sidering that sold column includes a beautiful home 72 | Montauk / Hampton Life | August 2017 “From the crowds of happy faces I see here, I expect a healthy 3rd and 4th quarter going forward!” Judi A Desiderio is the President of Town & Country and certainly knows this and most any market in the area THE UNCOUNTED O ne element of Montauk real estate that doesn’t play into the quarterly stats is the number of co-ops that are sold here. And Montauk has a number of large supply of those ranging from the many hotel/co-ops that line the beach like the Royal Atlantic, Surf Club, Ocean Col- ony, Driftwood to name only a few to more residen- tial units scattered throughout the town. as well as any. Acknowledging the 2nd Quarter slump she sees this more as a classic economic tug-of-war. “I can confidently say there is not a lack o )5хլɕхєЁѡɔ́՝䁑)丁Q́䀘͕́)ɥ́Ѽɕ͔ɽՍ́Ѽɕݡɔݔ)͕ȁͥхѥt)%ѡȁݽɑ̰͕́ٔɥ́Ѡ)ݡ́ٔɥٕ͔QЁ)ݡЁԁ͕ѡ̀ɹEՅѕȁɕи Ёٕ)ѡՍ́́)յȁѡ)'eٔхݥѠѡ͕́Ѽɽȴ)ѥ́ݥѠ͕́ݡɕ݅ЁѼ͕ЁЁЁѡ)̸́ɔ͕́Ѽɕ锁ԁ)Օ锁ͼՍեЁͥͱ5)хլɕхєѡ͔յ́͡ձ͕ѱ)Ѽɵ)եͥѕᕍѕɽ́)ȁչ٥́ѡɥѥɤ)مєѠ́Ʌѕͥ́)ɉѥѽ1Ё啅ȀЁݕɔͽѡ)ձѤɅQ́啅ȁѡɕ(́ѼɅЁݡѡ́ɔѥ)ѥ]ЁѼݸɽѡȁͅ)ȁMչˊé ɥ́ ЀشԴ(́ɽѼ)Ёѡѽѡ́ѡIM%9 LP)UI9geLMЁٕɱѡѡ=)5хլ!݅ѡ́ѥѕ)̰ɕͥѥѽݹ͕́ɔѡ)ѡݡЁ́Ѽɥхձ)͕ȁѡ͍ɹȁݥѠɥ)ѡЁɅɽԸԀԁ)́չЁ́ɕݥȁ)ѡЁ́ͥٔɥمє1ɝش)ɽ́Ёɽ́ɕ̰э́ɔ)ܹ5хխ1