As borrowing rates stay at an all-time high, the exclusive Hamptons market in New York is experiencing a precipitous drop in new contracts.
According to a recent analysis by Douglas Elliman and Miller Samuel, low inventory is one of the primary causes of the decline in contracts, which dropped by more than 50 percent compared to the same month a year earlier.
Since June 2021, fresh inventory has decreased yearly in every month but two.
In November, for instance, the number of new postings decreased by 18%, from 99 to 81.
With the exception of properties priced between $10 million and $20 million, all other price ranges saw a decline in new inventory.
The Post quoted appraiser Jonathan Miller of Miller Samuel, who wrote the Elliman assessment, as saying, “Would-be sellers are’married’ to the cheap rates they’ve enjoyed since a refinance or purchase during the previous four years.” While many purchasers are cash-only, they are affected by Fed policy, which has produced volatility over the past year.
With interest rates at a sky-high 7% — a measure designed to battle continuous inflation — owners who have 30-year fixed loans at an average rate of around 3% are not in a rush to relocate.
Miller noted, “The difficulty in the Hamptons is the lack of listed inventory and the lack of fresh supply entering the market.” “New inventory has decreased in four of the last six months since June.”
In the Hamptons, the number of newly signed contracts decreased by 53%, from 134 to 63.
“The lack of listed inventory is a national housing market problem, and I believe a recession is the only near-term solution to bring more supply to the market, but what buyer would want a recession?” he said.
»50% fewer contracts for properties in the Hamptons are signed«