The East End Real Estate Market Report: 2Q 2023

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“Right now, the Hamptons market is going through a transitional phase, with factors like limited inventory and mortgage rates influencing the current landscape. Despite a 6% quarterly increase in available homes across the East End, it’s worth noting that the second quarter of 2023 marked the seventh consecutive quarter with fewer than 2,000 listings.

Looking at the price metrics for single-family homes, there are varying trends across the East End. On the South Fork, there has been a slight dip in overall median and average prices this quarter, making it the second consecutive quarter with a downward trend. On the other hand, the North Fork experienced a modest upturn, with overall median and average prices showing a slight increase during the same period.

The Hamptons has so much to offer year-round, so while the current market is facing some challenges, there will always be potential for investors and homebuyers with an eye on the East End.”

– Ernie Cervi, Regional Senior Vice President, East End

In early September 2022, an all-encompassing attack on Suffolk County government systems caused a significant disruption in recorded real estate data. Due to the breach, the county did not report closings for several weeks in September and October. Therefore, the number of sales and dollar volume figures in Third Quarter and Fourth Quarter 2022 are negatively affected. Had the breach not occurred, reported figures likely would have been higher than what is shown in this report.

South Fork sales fell 46% YOY, making 2Q 2023 the slowest second quarter since 2012 and the seventh consecutive quarter of annual decline.

  • All but one South Fork village and hamlet saw double-digit declines in sales, with Bridgehampton/Sagaponack seeing the steepest decline (81%). Shelter Island sales were up 40% YOY.
  • Sales volume also had a significant annual drop, down 49%. Again, Shelter Island stood separate, with a 117% increase in sales volume while all other submarkets saw at least a 15% decline.

2Q 2023 is the second consecutive quarter with an annual decline in average and median price.

  • Even though there was an overall decline, most submarkets saw an increase in median price.
  • In Water Mill, with nearly 60% of sales over $5M this quarter, median price was up 170% YOY.
  • Amagansett saw the largest decline in average price (51%) because there were no reported closings over $4M.

In the residential luxury market (top 10% of all residential sales):

  • The luxury average price on the South Fork fell 12% YOY to $10.077M, as there were zero sales over $30M this quarter compared to three last year.
  • Southampton and Water Mill had 40% of the South Fork’s luxury sales.

Sales across the North Fork fell annually for the eighth consecutive quarter, down 27% in the second quarter of 2023.

On the North Fork, average and median prices were up 7% and 2% respectively.   

  • Four of the six submarkets saw annual average price growth. Cutchogue had the most dramatic annual increase in average price, up 65% to $1.4099M, while Greenport had the steepest YOY decline with a 16% drop.
  • Median price was also up in four of the six submarkets. Aquebogue/Jamesport had the most significant annual increase of 28% due the majority of its deals reported at over $800K.

In the residential luxury market (top 10% of all residential sales):

  • Cutchogue led the North Fork in luxury sales with three transactions, including the highest priced sale at $4.25M.
  • Average and median price were up annually in the North Fork, an increase of 19% and 22% respectively.

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