The Hamptons real estate market has experienced a notable downturn as 2024 draws to a close. Recent data shows a staggering 47% decrease in the number of properties going under contract in the week ending December 24, 2024, compared to the same week in 2023. Only eight properties secured contracts, a sharp drop from fifteen last year. This marks a significant shift, especially when compared to 2022, where the same week saw fourteen contracts signed, representing a 43% decline from 2024 figures.
Breakdown of Recent Property Contracts
The properties that went under contract during this period were spread across various price ranges, including:
- One property over $10 million
- One property in the $3 to $5 million range
- One property priced between $2 and $3 million
- Four properties priced between $1 and $2 million
- One property under $1 million
The total dollar volume of these contracts was $27 million, a dramatic 79% drop from last year’s $131 million during the same week. This suggests that while contracts were signed, the overall market value has significantly decreased. Interestingly, the dollar volume remained the same as 2022, indicating a consistent level of high-end transactions despite the overall slowdown.
New Listings and Market Inventory
Despite the marked decrease in contract activity, the market welcomed eight new listings in the same week, maintaining a stable inventory. The new listings included:
- One property over $20 million
- Three properties priced between $5 and $10 million
- One property in the $3 to $5 million range
- Two properties priced between $2 and $3 million
- One property under $1 million
As of December 31, 2024, the total inventory stood at 1,810 listings, with 1,355 active properties and 455 properties under contract. This suggests that while buyer activity has slowed, sellers are still putting properties on the market, maintaining a relatively stable inventory.
Market Trends and Insights
Several key trends and insights emerge from this data:
Price Adjustments Expected: With the sharp decline in contract activity and dollar volume, sellers may need to adjust their pricing strategies to attract buyers. The significant gap between contract volume and total dollar value suggests that many high-end properties are facing pricing challenges.
Luxury Market Resilience: Despite the overall decline, the presence of a contract over $10 million shows that the luxury segment remains somewhat resilient. This could indicate that while the broader market struggles, buyers in the high-end segment are still active, though likely more selective.
Potential for Market Stabilization: The influx of new listings could help stabilize the market, as long as there is a corresponding increase in buyer interest. The coming months will be crucial in determining whether the current downturn is a temporary fluctuation or a longer-term trend.
Predictions for 2025
The current downturn suggests that the Hamptons real estate market may continue to face challenges in the early part of 2025. If the trend of decreased activity persists, a more substantial correction in property values could be on the horizon. However, opportunities for buyers may emerge, especially in lower-priced segments where negotiations could be more favorable.
Conclusion
The Hamptons real estate market is currently navigating a difficult phase, with significant drops in both contract activity and dollar volume. While the market remains active in certain segments, particularly in luxury properties, overall trends point to a challenging environment for both buyers and sellers. As the market continues to evolve in 2025, staying informed and flexible will be key for anyone looking to enter or invest in the Hamptons real estate market.
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