Log In   ·   Become A Member

Hamptons Real Estate Market 2015: Realistic Prices & Strong Rental Season Ahead

John A. Viteritti

This Post Modern-style home built by Larry Kane in 1996 is located on one of the most coveted streets in East Hampton Village. Listed for $1.435M by Sarah Minardi of Saunders. (Courtesy Photo)

In December 2014, Fannie Mae published a national survey which included the following findings: Of those surveyed, 46% believe home prices will rise in 2015 while 8% say they will fall. Overall 64% think it's a good time to buy, and 40% believe it's a good time to sell. Finally, 45% believed their financial situation to improve, while 52% believe it will be easier to qualify for a mortgage.

But what does all that mean for the Hamptons market? For the East End point of view I asked several Hamptons brokers for their views on the 2015 market.

"We are experiencing sales listings coming on the market at more realistic prices," says Aspasia "Cia" Comnas, Executive Managing Director, Brown Harris Stevens. "Sellers understand that long periods of time on the market due to overpricing hinder the effort to achieve the highest possible price and accept the fact that today's buyers are more market savvy. Days on the market data is readily available to buyers. While helpful to keep overpricing in check, buyers should remember that the Hamptons market is a secondary home market and time on the market will in general be longer than in a primary home market. The rental market has been increasingly competitive as it is common place now for selling owners - even in the case of new construction - are willing to rent pending a sale, which has raised the bar for rental properties. Landlords are competing with stylishly furnished, well-appointed newer homes with every amenity. Consequently, some of the older homes are not renting as well. Buyer agency has now more or less become the norm in the Hamptons which was one of the last areas to embrace buyer agency. It has certainly made agency disclosure easier for many agents and has brought the Hamptons in line with the rest of the country where buyer agency with every buyer is standard."

Dennis DiCalogero, Associate Broker, Douglas Elliman Real Estate spoke to the question of older homes, "Listings will be strong and continue to come on to the market, but the majority will be older homes. Not exactly what the market is looking for. Buyers continue to look for new homes or as close to new as you can get. This is a problem for first-time buyers. The days of buying a new home in the Hamptons for $700k or $800k are almost completely gone. I suggest they focus on location. You can always upgrade the home. Prices in the high end should continue to go higher due to demand and lack of inventory. Mid-range homes, $1M to $2M, are likely to remain at the same price point. This is all contingent on interest rates remaining calm with slight growth."

"I feel we are certainly trending toward a solid improvement in the Hamptons real estate market," says Htun Han, Principal Broker, Hamptons Realty Group. "The proven maxim through past economic cycles is that the most desirable locations and properties get affected last in a downturn but pick up first in an upturn, which, for our market, started in 2011-2012 and has gained momentum. Steadily reduced inventory can only help the market gain strength. In East Hampton, even the Springs are getting offers and acceptances quite rapidly. In an improved market, the tendency is for owners to increase their asking prices. My advice is to resist that temptation. Stick with your asking price and seriously consider offers that come their way. The only noticeable impediment to our market improving even faster is the availability of mortgage money. Lenders were burned by the mortgage 2008 meltdown, are more closely scrutinized and regulated by the Feds, and in my opinion, have over-reacted. Obtaining a mortgage is nearly impossible for the average buyer. One has to have impeccable credit scores, a 15% to 20% down payment, and stable employment. If there is a serious desire by our political leaders to increase home ownership, they will need to pressure lenders to loosen up on the qualification requirements."

I asked how buyer agency was progressing in the Hamptons, Sarah MInardi, Associate Broker, Saunders & Associates explained, "The market has been busy since the holidays ended. Days on the market all comes down to the price point. If buyers and brokers see value in the listing, they are showing the homes and reaching agreements quickly. In the North Woods of East Hampton, inventory of homes under $1M has dwindled greatly, and in the $700k and under range, basically non-existent. Homes for sale between $1.2M and $1.9M in the Northwest are up against a lot of competition. If they are going to break the $2M mark they need to have close proximity the village with all the modern amenities. To break the $3M mark the house better be brand new, or very close to it, with all the bells and whistles."

Minardi went on to say, "Buyer Agency is happening more and more, and has become much more universally accepted among agents and agencies. The commissions come out of the proceeds of the sale so no need to have any arguments there. If I am working with a buyer, we start out of the gate that I am working as their agent and it is very clear from the start."

Regarding rentals Minardi says, "Rentals look to have a stronger season this year. Potential tenants are better off working through a broker who knows landlords and homes versus going on websites such as AirBnB. I had a potential tenant who went that route and found out after the fact that the landlord has had issues with returning security deposits. Chances are he'll call me the next go-round."

John is a St. John's University graduate, licensed Real Estate broker, DOS Certified Instructor, lecturer, teaches real estate license classes at Cook Maran Real Estate School, and is a well-respected consultant to the real estate industry. He previously taught at LIU and NYU. www.johnaviteritti.com

Related Articles:

Be the first to comment on this article. (Just fill out the form below)

Submit Your Comment

Please note, you are not currently logged in. Your comment will be submitted as a guest.
To submit your comment as a member, please click here.
Your Name:
* Comments will be reviewed and posted in a timely fashion
* All fields are required
What color is the sky?
(For spam prevention, thanks)
East End Tick Control
The East End's only New York State licensed dedicated tick and mosquito control specialists!

Hamptons Carpet One Floor & Home
We pay less,and so do you.With over 1,000 stores in our buying group, we can get the lowest prices from the best flooring manufacturers — and pass the savings on to you.Visit our other locations: Hamptons Carpet One Floor & Home, 675 North Sea Road,Southampton, NY 11968

Southampton Masonry-Visiting the Southampton or the Wainscott locations is an exciting experience.
Southampton Masonry has been serving Long Island's masonry and tile needs since 1975. Delivering quality products from Manhattan to Montauk for over three decades. The company's continued success is due primarily to their number one priority: customer satisfaction, with a promise of prompt and courteous service from the professional, knowledgeable staff. Southampton Masonry has the largest inventory on the east end. As direct importers they can offer a large variety of the finest quality products at the most competitive pricing for both your interior and exterior projects.

CP Complete- Landscape Design & Construction
Paul Guillo And Chris Hall Two Of The Most Respected Names In The Community Together, they are partners in CP Complete. They bring their years of experience and integrity to creating and renovating luxury backyards.

Hamptons luxury real estate specialist for 33 years, Andrea Ackerman offers outstanding expertise in the field.
Hamptons luxury real estate specialist for 34 years, Andrea Ackerman offers outstanding expertise in the field. Trusted, experienced and successful, Andrea has solidified herself as the go-to broker of the Hamptons and a wholehearted advocate for her clients. A pioneer in the real estate industry on the East End of Long Island, she is driven by her passion for the business. Andrea is based in the Bridgehampton office of Brown Harris Stevens as a licensed real estate associate broker and consultant. Formerly, a principal partner and Senior Director at Brown Harris Stevens, Andrea now assists in developing their corporate strategy for the Hamptons region, advising other brokers and sales associates, as well as being one of the top producers and listors.

Southrifty Drug 54 Jagger Lane, Southampton Village
Southrifty Drug is a small, neighborhood pharmacy with limited shelf space, and we have to be very selective about which over-the-counter items we carry. As a result you'll find a no nonsense concentration of very effective, high quality and useful products on our shelves. In this new section, we feature a number of these products that we feel are especially worthy of your consideration.

Burner Law Group, P.C.
Burner Law Group, P.C. are full service elder law attorneys concentrating in the areas of Estate Planning, Trust and Estate Administration and Litigation, Special Needs Planning, Guardianship and Elder Law. Offices in East Setauket‚ NY, Westhampton Beach, NY, and New York, NY.

Calissa is Mykonos in the Hamptons.
Our menu focuses on seafood and Greek dishes such as salt baked fish, seafood pasta and Mediterranean mezze. Our wine list has been awarded The Award of Excellence from Wine Spectator and boasts the largest selection of rosé in the Hamptons. The name Calissa is derived from the brightest constellation in the summer sky.Our sister restaurants in New York are Amali and Bar Marseille, opening 2020 in the Rockaways. Calissa offers private dining spaces for groups from 10 to 300 people. To plan your next wedding, corporate event or gathering, please email events@calissahamptons.com. 1020 MONTAUK HIGHWAY, WATER MILL

Suburban Propane in Bridgehampton, New York has been serving proudly supporting our community for 90 years.
Suburban Propane has been serving the energy needs for home owners and business in the Hampton’s for decades. We offer friendly service by local professionals you know and trust, plus the peace of mind that comes from knowing we are among the leaders in the industry for safety.

WordHampton Public Relations
We build client revenues and reputations. Our reputation is built on delivering a strong media presence and, as a result, demand for our clients' offerings, resulting in a positive impact on sales. Successful campaigns start with understanding the goals of our clients and developing a customized strategy that will achieve those objectives.

SGF Acupuncture, PLLC. Is owned and operated By Sandra Geehreng Foster.
SGF Acupuncture, PLLC. Is owned and operated By Sandra Geehreng Foster. Her treatments are based on five element acupuncture. She also offers Far Infrared Sauna treatments. PEMF cellular excerise.

Spanish Maven was founded by Marisa Ramirez.
Spanish Maven was founded by Marisa Ramirez after she experienced learning English as a second language upon relocating to New York.

Big Brunch Box-delivered in The Hamptons
BIG BRUNCH BOX. Your favorite gourmet brunch foods for weekend eating with friends and family, ordered with ease and conveniently dropped at your doorstep in The Hamptons every Friday with fanatical attention to quality.

Long Island Cares, Inc.
While distributing nutritious food to our Nassau and Suffolk County neighbors is the heart of Long Island Cares, we’re more than just a food bank. We’re one of the region’s most comprehensive hunger assistance organizations, and there are many other ways we can help you and your loved ones.