Second Quarter 2021 Residential Market Report

 

We are pleased to present our Second Quarter 2021 Hamptons + North Fork market report. With an impressive increase the number of sales, a record high dollar volume, and the highest average and median sales prices to date, the Hamptons real estate market is stronger than ever.

 

After a year of frenzied buying activity accelerated by the Covid-19 pandemic, it appears that the market is entering a more stable, less reactive environment. Although we continue to be in a strong seller’s market - with demand outpacing inventory - as more new sellers are motivated to put their home on the market due to rising sale prices, there will tend to be fewer buyers able or willing to pay the higher prices, or at least more likely to wait rather than make an impulsive offer.

 

As in any market condition, proper pricing is key. Sellers trying to ride the wave of the recent high prices may initially list their properties too aggressively. A scarcity or absence of offers is a clear indication of overpricing and results in more days on the market and, eventually, price reductions or other concessions. Inevitably, overpricing will lead to an increased inventory as listings stay on the market longer. With the possibility of more options available, the pendulum may start to swing from a seller’s market to a buyer’s market.

 

Looking ahead, the major variables that will impact the Hamptons market are the Delta variant spread, travel destinations opening, and the return to in-person school and work environments. Time will tell how the market will develop in the second half of 2021, but as the following data shows, real estate in the Hamptons continues to demonstrate its long term strength and resilience.

 

Robert M. Nelson
Executive Managing Director
Brown Harris Stevens of the Hamptons, LLC