Don’t haul out the tiny violins because the median house price is still $4 million, but the Hamptons real-estate market seems poised for a major crash.
Prices haven’t collapsed yet (down a modest 9% year-over-year), but the market has effectively frozen, with inventory climbing 46% in Q2 to a 4-year supply. Those who don’t have to sell won’t, but those who want to sell–a group that includes a lot of reasonable people who are currently in denial–will soon be cutting prices. Significantly.
Bloomberg: Only 37 houses and condominiums priced at more than $2.36 million sold in the Hamptons and on Long Island’s North Fork, appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said today. Inventory jumped 46 per cent. At the current sales pace it would take four years to sell all 584 luxury homes on the market…
New York City’s unemployment rate climbed to 9.5 per cent in June, the state labour Department said July 16. Financial companies eliminated 33,300 jobs, or 7.1 per cent of their workforce, in the 12 months ended in June as Wall Street losses and asset writedowns topped $1.5 trillion worldwide.
The median sales price for a luxury home on Long Island’s East End dropped 9.4 per cent from a year earlier to almost $4 million, according to today’s survey by the Manhattan-based companies.
The most expensive Hamptons home now for sale is a $68 million, 60-acre compound in Bridgehampton that includes a 20,000-square-foot home with seven bedrooms, 12 baths and 14 gardens, according to real estate listing service StreetEasy.com. The price hasn’t been reduced since the original listing in October 2007.
And here’s the full report:
See Also: The Coming Nantucket Real Estate Crash
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