Hamptons Buyers Opt For Cheaper Homes Instead Of Luxury Houses

Hamptons home buyers are increasingly seeking "low-cost" vacation houses under the $3.3 million mark. But interested bidders agreed to fork over more than the listed asking price in 10 percent of sales made, according to a report from Douglas Elliman Real Estate and appraiser Miller Samuel Inc. Thursday.

Listings sold under $3.3 million mark made up the lower 90 percent of the market. Buyers searching for bargain deals even nabbed up condominiums in the $500,000 range. These trends are likely due to people "trading size for convenience and location," according to Carl Benincasa, a regional vice president of sales for the Hamptons at Douglas Elliman.

"It's really interesting and we're trying to get our heads around what's going on. It seems that there's this trend in the market," Benincasa told International Business Times Thursday. "The high-end, luxury stuff we need to reevaluate pricing. As they keep changing, the prices are driven up."

Benincasa added, "That has driven people to these condos. There's been an increase in supply in condos out here. We've always had them, but there's a lot of new developments in condominiums — luxury specifically."

This market transition could impact the trends for future homes sold in the Hamptons.

"It wouldn't be surprising to see on the high-end, those largescale, luxury prices moving a little bit downward and in the condos, you might see the prices moving a little up," Benincasa told IBT.

There were still buyers that swept up the luxury listings available within the $10 million to $20 million range. Two $20 million homes were purchased in East Hampton Village during the second quarter of 2017, according to a report conducted by Town & Country Real Estate.

"East Hampton's Estate section, historically, posts the high watermark most years," Town & Country wrote in a press release Oct. 16. "But 2017 won't shatter the ceiling as these two sales were 'only' $29M and $25.925M. A far cry from the prior ceilings of well over $100M."

East Hampton Village earned the highest median home sales price at $4,437,500. This is still 15 percent less than last years' numbers at $5.25 million. These numbers, however, are still above the median in the Bridgehampton area, coming in at $2.71 million. Sales within the $5 million and $9.99 million range fell by 56 percent and saw only 11 buyers.