High-end Hamptons real estate is a tricky business. There’s a lot of money at stake and the buyers are enormously savvy financially. This summer the Hamptons has seen an increase in high-end sales, while at the same time, high-end rentals have been a bit more stagnant for the summer.
Real estate experts are saying that those that can afford high-end rentals are also high-end buyers, and they are snapping up property when they see the right deal. Also this year, rentals were locked in remarkably early to those looking to get great deals for the summer.
Sally Gillies, of the Corcoran Group in Bridgehampton, gave us some insight into this remarkably exclusive market. She explains that, “Luxury sales and all rentals were moving fast earlier than normal before the New Year (November), and the best of the best rented even before the Super Bowl took place. In the past, the rental market has kicked into high gear after the Super Bowl. So when the summer came around, there was a sudden lull in calls after the best inventory had been rented. Landlords with high-end rentals that have rented year after year called in a panic and still continue to call to ask why. The first thought that came to mind was that those high-end renters were actually snapping up all the south-of-the-highway deals left on the market before New Years, when sellers were anxious to unload their properties because of the capital gains tax increase after the New Year. That, and of course the beautiful new developments being built just north of the highway.”
Buying high-end, especially when you’re looking for supreme quality in the $3 million and up range, also requires a great amount of research to find a good deal. Gillies explained to me that as spring prices began to stabilize, the market began to really move.
“Prices stabilized and were on the rise in the spring. Lower-priced homes in the half a million dollar range went flying off the shelves as fast as they were listed while the highest-priced properties that lingered on the market for one to three years, also started to. Today, with so many high-end buyers looking, it’s difficult to find a property in the $3.5-5 million range that is south of the highway. When one quality piece does hit the market in that range you can bet it will be sold quickly and both sellers and buyers know that. I’m working with several developers and several high-end buyers at the moment who are looking for just that type of property.”
Where are all of the high-end buyers looking? According to Gillies, Montauk is red-hot.
“The Villages of Southampton, Sag Harbor, Bridgehampton, and, of course, Amagansett are where buyers search. But I will say that Montauk especially is hot, hot, hot. Homes that are close to town in any village move quickly, and most of them are in the high-end price range.”
Gillies also mentioned that high-end renters are generally very interested in being on the water.
“High-end waterfronts anywhere are the most exciting rental and sale listings currently. You can guarantee your tenants an amazing vacation on the water in any town.”
To see all of the Corcoran Group’s listings visit Corcoran.com. Sally Gillies can be reached at 631-537-4186.
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