Photo: Sotheby’s International Realty
Home prices in the Hamptons fell in the latter half of 2011, suggesting that the “bloodbath” among Wall Street bonuses may be affecting the real estate market in the area, according to The Wall Street Journal.The Hamptons are a favourite locale for many Wall Streeters and hedge funders, many of whom buy a house in the area as they frequent it during the summer months. Big finance names like Phil Falcone, Jim Chanos, David Tepper and Carl Icahn are all known to have residences in the Hamptons.
Sales for expensive beachfront properties and low-priced homes—selling for less than $1 million—have remained high, but sales for houses priced between $2.5 million to $4 million have suffered the most. The fall of median home prices also suggest the popularity of cheaper homes, according to the Wall Street Journal.
Tim Davis, a Corcoran broker who has sold some of the most expensive properties in the Hamptons, said that Wall Street bonuses are frequently part of the conversation with buyers.
Two Wall Street buyers now in contracts for houses costing less than $5 million north of Route 27 had applied for extra-large mortgages, just in case their bonuses fell short, he said. So far, he said, “There have been no complications.”