2022 1H East End Market Report

RANKED THE HAMPTONS’ NUMBER ONE BROKER BY REALTRENDS 2022 PUBLISHED BY WSJ, 

TIM DAVIS SALES TOPPED $650M IN THE PAST 24 MONTHS AND TOTALED NEARLY $900M FROM 2019-2021

Corcoran East End power broker Tim Davis is honored to be ranked as the Hamptons’ number one residential real estate broker according to RealTrends 2022, a list published annually by The Wall Street Journal. He is humbled by the announcement given the unprecedented challenges of the times. The pandemic’s enormous effect on the residential market worldwide, as people relocated to suburban, rural and resort areas, is more pronounced today due to dwindling inventory. In short, it’s made buying property in coveted markets such as the Hamptons somewhat challenging and emphasizes the importance of working with longtime professionals who know their markets inside and out.

“Demand in the Hamptons remains strong. The active market’s inventory declines year-over-year, which in some cases causes prices to increase,” said Tim Davis, of homes garnering phenomenal prices for Q1 and Q2 2022, despite the number of sales decreasing across all South Fork villages and hamlets with the dearth in availability. “I only wish we had more supply to meet demand. Savvy buyers really want to be here.”

Davis cited volatile stock and crypto markets, and pandemic-related shifts in priorities and to working remotely as other factors driving demand. Should people wish to commute to the office a few days of the week again, the Hamptons’ proximity to NYC benefits their new work/life balance. Here, he shares his valued insight into the East End’s fast-paced market.

Q1 2022 at a Glance:        

  • Double-digit, year-over-year jumps in median and average prices propelled these statistics to their highest point on record.
  • Median and average prices increased by double digits, 14% to $1.840M and 29% to $3.459M, respectively.
  • Median price increased most significantly in East Hampton Village, where it jumped 120%, from $3M to $6.6M due to a marked rise in the share of sales over $10M.
  • Westhampton Beach was the sole outlier, where median price dropped due to a smaller share of sales over $2M.
  • The number of reported closed sales was down 37% from the market’s peak a year ago, and sales volume also dropped 18% annually and 10% quarter-over-quarter.
  • Sag Harbor/North Haven exhibited the least significant decline, but still fell 23% year-over-year. Comparatively, the largest decrease in sales occurred in Amagansett, where there were nearly half the number of sales year-over-year.
  • Sales volume, however, increased in three of the 14 hamlets and villages including Montauk, East Hampton Village and Water Mill. Volume increased most notably in Water Mill, with an annual change of 65% due to two sales over $55M.

Residential Luxury Market (top 10% of all residential sales):

  • On the South Fork, the top 10% of reported sales exhibited an increase in median and average prices, as the share of sales over $10M grew from 30% to more than half.
  • The most expensive sale of the quarter was 70 Further Lane in East Hampton Village for $59.5M.
  • With sales down 37% on the South Fork, luxury market sales volume also decreased to $995.764M, an annual change of 14%.

Q2 2022 at a Glance:        

  • Reported closed sales were the second-highest of any second quarter since 2014.
  • Though year-over-year sales dropped 28%, quarter-over-quarter activity increased 7%.
  • The two areas that gained the most sales quarter-over-quarter were Southampton Town and Southampton Village—rising 41% and 43%, respectively.
  • West of the Shinnecock Canal—where sales typically make up a quarter of overall South Fork sales—saw an increase in deal activity of 11%.

Residential Luxury Market (top 10% of all residential sales):

  • While median price increased 13%, average price fell 26% due to only one reported sale over $40M.
  • The most expensive sale of the quarter was 35 Potato Road in Sagaponack, at $46.5M.
  • Luxury sales predominately took place in Bridgehampton/Sagaponack and Southampton Village, each reporting 15 transactions.
  • With luxury market sales down 28% on the South Fork, luxury market sales volume followed with a decline of 47% to $788.260M.

These in-depth results reflect recent news coverage by national media outlets including Mansion Global’s “Low Supply and Rising Rates Slow Hamptons Sales, but Prices Are Still Going Up”, published in July 2022, with data contributions from Corcoran. As a longtime resident of the Hamptons and trusted broker, Davis and his listings and sales receive wide coverage by other publications such as WSJ, Forbes, Business Insider, Behind the Hedges, Dirt, The New York Post and The Real Deal. In August, the latter reported a $48M sale of an off-market listing at 1116 Meadow Lane in Southampton to be $9M above asking price. The sale reinforces the $67M value of nearby listing for 1320 Meadow Lane in Southampton, a nearly 10-acre property with hundreds of feet of Atlantic Ocean frontage to build one’s dream home. “It’s rare gems like these along Meadow Lane that instill my deep commitment to the Hamptons and belief that the region’s record sales and high demand will continue for years to come,”- Tim Davis.