Sales, Prices Slashed in The Hamptons

2011 has not been kind to sellers in the Hamptons. According to first quarter numbers from Prudential Douglas Elliman, the market share of $1+ million homes dropped to the second-lowest level in seven years (rock bottom being fall 2008 after the Lehman Brothers burned down the house, as it were.)

Hamptons sales on the whole were down 22% from last year, and sales of $5+ million properties were down close to 40% from last quarter. Don’t get your hammocks in a twist, Hamptonites. That 40% looks harsher than it is. The fourth quarter of 2010 spurred a flurry of activity, as many rushed to close before the Bush tax cuts were scheduled to expire at the end of the year. (Turns out they were extended another two years.)

Whether you attribute the first quarter slump to inflated 2010 sales, lack of urgency since buyers now have two more years to enjoy the tax cuts, or too many snowstorms to brave the outdoors, Hamptons Realtors claim spring is bringing increased activity. Spring, and a 5% increase in pay on Wall Street.

Source: Crain’s

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