Rentals Are On The Move

By Lona Rubenstein | 6 Comments

East Hampton - First, here's an enterprise interested in Hampton's commercial real estate with an art point of view. Bernard Goldberg Fine Arts in New York City will be opening a gallery at 4 Newtown Lane in East Hampton. Mr. Goldberg wants to do his part to keep downtown East Hampton Village as a center for the arts, according to his publicist. Opening is May 15, with a champagne reception May 24. There will be lectures during the summer and showing artists like Wyeth, Bellows, Chase, Steichen, Hartley, Sloan and high end decorative arts by Stickly, Deiderich, Frank Lloyd Wright.

Second, it wasn't a blink. We asked for a follow-up on the rental market we covered recently and folks in the industry obliged.

Property courtesy of Tim Davis, The Corcoran Group.

Here are the updates for landlords, sellers, market watchers, players. Rentals are where the market activity is now and what's more - where it usually is, weather not withstanding, in a traditional season. The difference here is that there are really fine opportunities out there on the sales market as well that might be swallowed up early by those bottom fishermen always looking and first-time buyers who see this as a window to jump in and get that vacation home on the East End. What is optimistic is that buyers see that the rental of vacation properties appears to be a stable option as an alternative to use.

Okay, so here are the updates:

Prudential Douglas Elliman's Broker Manager East Hampton, Tom MacNiven, tells us: "Rentals are continuing and even increasing. The good houses are going. I guess we'll have to readjust the old saying: If the house is important come early, if the deal is important, come late. This extremely stand-offish market has forced agents to work longer and harder than we have in the past. There is no such thing as an easy deal. Deals today are not only hard to put together, they are hard to keep together. And many agents are reconsidering their career choice or joining the ranks of the part-time. When the market comes back those who have not just survived but have set themselves up for the future will have a great run."

Jude Lyons, Westhampton Beach Realty: "The rental market remains strong. Just closed on a $1.2 million oceanfront whose property need work. The sale market - prices are low, a few bidding wars going on, seem to be closing close to the asking prices. Overall very good action on both fronts."

Veteran Broker/Owner Joe Schiffer, Main Street Realty Westhampton: "Rentals remain strong. Sales O.K., but there are more showings per customer now and a remaining reluctance to pull the trigger. I believe we have hit the bottom for our very select market. The remaining downside is the unsold inventory which will affect future prices."

Property courtesy of Town & Country Real Estate.

John A. Healey, Senior Vice President Town & Country Real Estate, Bridgehampton reports: "Ramping up. Three to six customers per weekend. Pricing vs. offering is tightening up on good properties. we will run out of great properties before Memorial Day. The steals will be on what is left over. Very busy!"

Jackie Dunphy, The Corcoran Group, East Hampton: "Rentals have remained strong although renters still seem to think there are bargains to be had. That's not the case as homeowners realize that the tide has turned and it will be just a matter of time before their home is rented. There's a lot of activity on the buyer side as well. Quite a few homes are in contract and NYSAR statistics say home sales in New York State are up by 14 percent."

I listened to an expert (yeah, right!) say the market should reach 10,000 by summer's end then slide again. If so - if it does - and if investors believe him and invest - then I predict those people will be looking for a place to put their money in August. And you know with the good deals in Hamptons' real estate, prime resort, great values, maybe there will be a rush in the sales market.

A lot of ifs as grandma used to say, but something is going on out there as the East End real estate market is a very strange business.

Lona Rubenstein is an accomplished author residing in East Hampton. Her new book, "Getting Back in the Game: Finding the Fountain of Youth in Cyberspace" can be found at local booksellers and online at www.gettingbackinthegame.com. For more real estate news and views contact Lona at lonafirst@aol.com.

Comments

Zedman from East Hampton says:
We are looking for a place to buy in East Hampton, where we have rented for the past 10 years. Sellers are still delusional regarding their asking prices. Let's face it, if you are selling into the worst market in 27 years, then you must need to sell. But when you are asking 25% above current market value, then you must realize you are NOT going to sell. If you face facts and lower your ask price to where the current NEW NYC market is, only then will you have results. We are sorry you might not be able to make a profit on it, you missed that boat. There are plenty of buyers, this is still New York, but we are educated buyers and not many of us are in too much of a rush. Good luck!

DKD from Southampton says:
I've rented my house the last 16 years, both full season and partial season. This year, I've had only one call and it was for year- round rental. So, here's my take: 1)Excess rental inventory as everyone who needs to subsidize mortgage decided to rent. When they can't rent out the house, the houses will go on the market this Fall at further depressed prices. My neighbors, some who live here year-round, have even decided to try to rent out their house this year. 2) More people wanting weekly or monthly rentals. This means they will rent later (in June, July, and into Aug) to get a better price

Hamptons are Done? from NYC says:
These agents have no idea what they are saying. Just wait 2 weekends from now on Memorial Day when they have 23423423423 listings still un-rented. Only then will they admit the rental market isn't strong and ramping up.

Former Southamptonite from MAINE says:
The Hamptons are done, cooked, baked, this season. Agents speak with forked tongues. Is that why they call it the Twin Forks? North Fork? South Fork? They have absolutely no credibility and they have done it to themselves. How much did Realogy lose this quarter? Things must be looking up? Wait until they have to cough up dough for their listing system. Another $200K down the drain. Their comments and business practices are laughable at best.

Rusty Nails from BH says:
Is there any way we (your loyal readers) can organize a intervention for some of these folks? Clearly there is some heavy, heavy Crack addiction out there in the RE industry. “Rentals are continuing and even increasing...." “The rental market remains strong...." “Rentals remain strong..." "“Ramping up...." Gimme' a break. Memorial day is two weekends away. Give it up folks. The party is over. Time to get your old job back at the King Kullen.

Tom D from Westhampton Beach says:
Interesting that rentals are supposedly so strong. Just looked at a real estate website for MD-LD rentals and they show about 4700. Now let's assume that there are a lot of duplicates (there are) and that a lot have already been rented but remain on the site. And let's say that all of those equal 50% or even 75%. At minimum, it would seem there are still at least 1,000 or more homes looking for occupants this summer. While I don't have a long history here, I sure don't think there were that many homes available a year or two ago with less than 2 weeks to Memorial Day.

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