There were 539 sales in the second quarter, an increase of 9.6 percent from a year earlier and the most since the first quarter of 2007, according to a report today by appraiser Miller Samuel and broker Prudential Douglas Elliman Real Estate.
Sales of homes under $1 million represented 63.2 percent of total transactions in the quarter, dragging down the median price 9.3 percent from a year earlier to $850,000, according to the report. Homes priced over $5 million — the luxurious ocean-side estates most commonly associated with the Hamptons — hit a record of 38 sales in the quarter, the most since Elliman started tracking the high-end market five years ago, Bloomberg reported.
“In the high end, there’s this sort of herd mentality of one sale leads to another,” Miller Samuel president Jonathan Miller told Bloomberg. “You see some high-end sales and it gives people the impetus to list.” Miller said that an improving New York City job market and interest from wealthy overseas investors fueled sales of upper-end properties, whereas mortgage rates at record lows drove transactions for the under-$1 million homes.
In contrast to declining inventory for the same period in Manhattan, the inventory of homes available for purchase in the Hamptons rose 11 percent from a year earlier to 1,798, the report stated.
“The Hamptons is hot; people want to be there, and with everything that is going on in the world, people see it as a good investment,” Elliman CEO Dottie Herman told Crain’s.