THE REAL ESTATE MARKET IN SOUTHAMPTON
ARE YOU WAITING FOR A PARADE?
No, Mayor Giuliani is not in a parade celebrating the turnaround in the real estate market. He is at the Southampton Fourth of July Parade! Has our market turned around? We believe it has, but how will you know for sure? Are you waiting for a parade?
THE SOUTHAMPTON AND NATIONAL MARKETS COMPARED
Food for thought! If you were considering what to wear today, would you check out the weather forcast in Phoenix, Las Vegas, Detroit, or Miami? Or would you look for a specific weather forecast for where you were going to be? Perhaps it is just as meaningless to look at the real estate markets in other parts of our country when considering a home in Southampton.
THE SOUTHAMPTON VILLAGE REAL ESTATE MARKET
We believe the stability of Southampton market can be attributed to the uniqueness and over-all desirability of its coveted location. Despite the collapse of our nation's mortgage industry and the generally gloomy economy, people still want to live and invest in here.
Early last year, for various reasons including stricter underwriting policies by financial institutions and just plain fear, buyers had been standing on the sidelines, paralyzed. The current, albeit slower than normal, Southampton market is turning around as we are now seeing offers and acceptances and contracts to purchase being signed.
Buyers are still cautious but seizing opportunity from the unusual market conditions, including a larger than normal supply of homes on the market, great prices, and near record low interest rates. Fortunately our market has seen few foreclosures, and most sellers are in the comfortable position of not needing to sell at a distressed price. Low-ball offers are typically not securing deals.
From just before Christmas, 2008 through April 14, 2009 there was only one sale (excluding partial interests and commercial). The Southampton Village market has since done a turnaround, with 20 residential homes closing in the 2nd quarter of 2009, 27 in the 3rd quarter, and 24 in the 4th quarter, as per the Real Estate Report.
Citing a similar trend, George R. Simpson, President of Suffolk Research Service, Inc., says, "The real estate market on the East End of Long Island is showing strong signs that a market turnaround happened in the 2nd quarter of 2009 – and the upward trend has continued for the 4th quarter of ’09."
There were 25 residential sales during the first quarter of 2010 in Southampton Village, a striking contrast to the one sale during the first quarter of 2009. Additionally, with complete numbers not in yet, there were at least 25 residential sales during the second quarter. Volume was about double for the first half of this year when compared to the same period last year.
Prices have corrected, there are bargains to be found, and interest rates are extremely low. This is a great time to buy!
HOUSING STOCK IN SOUTHAMPTON VILLAGE
When talking about Southampton it is important to clarify whether you mean the Village of Southampton or the Town of Southampton. Southampton Village is a small oceanfront community within the Township of Southampton. Southampton Village comprises 6.8 square miles, less than 5% of Southampton Town's 140.2 square miles and is only one of seven incorporated villages within the town.
To further complicate your hunt for real estate in Southampton Village, the Village shares the same zip code with other parts of Southampton Town including the Hamlets of North Sea, Tuckahoe, and Shinnecock Hills. Properties in these communities reflect a different market than the Village, where the mantra is location, location, location.
Housing stock is a limited commodity in Southampton Village. 2004 was a record year for most sales -- only 176 units sold. 2008 was a record for least sales with 68 units sold. The average volume for the last 10 years is 116 units sold. Vacant land is even more scarce. In the last nine years the largest volume of residential vacant land transfers occurred in 2000 with only 19 units sold.
About half of all Village property is zoned 3-acre residential single-family. Southampton Village is over 95% built out and most of the remaining farmland is not on the market, virtually all sales are of existing homes. Typically when a house is sold, the new owner will transform the existing house into a home more in keeping with his family's specific needs. Sometimes this transformation results in a complete demolition and a newly constructed home.
SOUTHAMPTON VILLAGE STATISTICS
To view Southampton Village real estate statistics including median price, unit and dollar sales,
click here:
Real Estate Statistics
SOUTHAMPTON VILLAGE RECENT SALES
To view recent real estate sales in the Village of Southampton, including photos, address, price, and date of transaction,
click here:
2010 1st Quarter Transfers, 2009 4th Quarter Transfers,
2009 3rd Quarter Sales, 2009 2nd Quarter Sales, 2009 1st Quarter Sales, 2008 Sales
ADDITIONAL READINGS
To read "A Frigid Hamptons Market Thaws to Lukewarm," describing the pick-up of the Hamptons real estate market,
click here:
A Frigid Hamptons Market Thaws - The New York Times, February 12, 2010
To read "Hamptons Show Signs of Life: Market remains shackey, but newly emboldened Wall Streeters are returning," an account of signs of a turnaround in the Hamptons market, click here:
Hamptons Shows Signs of Life - The Wall Street Journal September 25, 2009
To read "Southampton $60 Million Deal Is Top 2008 Long Island Home Sale," which states among other things that Southampton also had the second and third most expensive beachside home sales, click here:
Top 2008 Home Sale - Bloomberg.com February 12, 2009
To read "Standoff Keeps Market from Moving," an account of how the East End market is generally flat. People are looking for bargains, but sellers are not reducing their prices, and there is a standoff, click here:
Standoff - The Southampton Press February 12, 2009
To read "Developing the Property: The man behind Olde Towne subdivision is starting with some serious landscaping," an account of the 18-month $7.5 million tree planting project for the Olde Towne subdivision, click here:
Developing the Property - The Southampton Press February 5, 2009
To read about fashion designer Calvin Klein's application to tear down his existing home and build a much more scaled down retreat, click here:
The Dragon Could Soon Fall - The Southampton Press December 18, 2008
SOUTHAMPTON MLS
For access to MLS listings,
click here:
MLS
Southampton real estate is unique, both in its nature and how it is marketed. Unlike what is typical of most other locations in our country, many available Southampton homes are "quiet" listings, simply not found on MLS. When you work directly with Joan and Paul, they will share with you additional Southampton properties including those marketed through an automated co-brokerage system only accessible to subscribing brokers. For more on this topic,
click here:
Questioning the Fairness of a Listing Service
The Southampton Press December 18, 2008
