The presidential election, the Federal Reserve's recent increase in interest rates, and how the economy will develop are factors that are likely to affect the real estate market. I solicited real estate brokers doing business in the Hamptons for their views on what next year's market will look like.
"Value and lifestyle are going to be the buzz words in 2016. It can be a tear down on a spectacular stretch of oceanfront, or a beautifully appointed new home with all the bells and whistles," said Judi Desiderio, Chief Executive Officer, Town & Country
Real Estate. "Millenniums are entering our market, looking for a place to 'reboot' yet get back to the city, so hamlets west of the canal are becoming increasingly popular. Aging baby boomers are looking for places to gather with friends and family during their downtime." But it's buyers who fall in the middle to watch. "Those in between have the greatest purchasing power, they drive the $8 to $18 million price range," noted Desiderio. "Their reaction to the stock market dictates their decisions, and real estate is an investment vehicle to most. The elite over $25 million buyer is driven by gains in the stock market which they diversify with art and luxury real estate." As for the past few years, she notes "mid 2014 and 2015 benefited from the 30 percent gains of 2013." But Desiderio doubts that will happen again. "I don't expect the same number of sales over $25 million that we have seen in the past 18 months."
"The real estate market on the East End will mirror your 401K," said Paul Brennan
, Associate Broker, Douglas Elliman
Real Estate. "I see rising interest rates and a volatile stock market with a downward trend." Brennan notes that "at this point in time, supply is great and demand is waning. New construction at good value is the only thing that's in demand."
"In East Hampton Town, the wild card for 2016 is the impact of the recently enacted Rental Registry Law," noted Joseph Kazickas
, Managing Broker, Rosehip Partners
Real Estate. "It might create conditions that could compel owners to sell their investment properties. The fact that rentals cannot be advertised without a rental registration number will cause hundreds of properties to be removed from websites." Kazickas believes the new law could cause a rise in properties on the market. "Many homeowners depend upon rental income to maintain their investment properties," added Kazickas. "The potential loss of income and penalties for violating the law could cause these homeowners to throw in the towel and sell their properties, which is not good for the East Hampton market." Other game changers, he notes, are foreign exchange rates and the market's stability. "The strength of the dollar in currency markets, the overall direction of equity markets, the profitability of the financial sector, and finally, the speed and magnitude of the Fed's tightening, which will have a significant impact on mortgage rates," explained Kazickas. "In all likelihood, I see a net negative for real estate."
"I think there is a dichotomy in the current market place," shared Anthony DeVivio, Managing Director, Hamptons Halstead Property. "The very high and high end are a buyer's market. The lower end is solidly a seller's market." A trend which he thinks will continue into 2016. "While we are experiencing a pause in transactions, (2015 will be measurably below 2014), I do not believe this market is finished with growth," said DeVivio. "I believe we will continue to see downward price adjustments on the high end, and continued strength and slightly higher pricing on the low end. I also anticipate a slightly higher rate of transactions."
"I think a lot of my colleagues would agree that 2015 was a stellar year," noted John Christopher, Associate Broker, Brown Harris Stevens
, Sag Harbor. "Although unit sales were less than the year before, median prices rose. There was extreme activity in the below million dollar market, and the high end was robust." Since 2016 is an election year, he's not sure if that trend will continue in the New Year. "People become anxious and hesitant about the future," explained Christopher. "You see it play out in the stock and bond markets, and the real estate market is not immune to these conditions." One thing Christopher is certain about, buyers will continue the search for that bargain buy. "Although we live in a microcosm compared to the rest of the country, people are virtually the same. We won't see buyers snapping up properties like before unless they are extremely well priced," noted Christopher. "Certain cache' homes and areas will continue to thrive but other areas will ratchet back because buyers will be more hesitant than in the past."
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
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 firstname.lastname@example.org. 1020 MONTAUK HIGHWAY, WATER MILL
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.
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.