Home contracts drop 50% in the Hamptons

New York’s tony Hamptons market is seeing a sharp decline in new contracts as interest rates remain at all-time highs.

Low inventory is one of the leading reasons for falling contracts – which fell more than 50% last month compared to a year ago, according to a new report. Douglas Elliman and Miller Samuel,

From June 2021, new inventory has declined every year except for two months.

In November, for example, new listings went from 99 to 81—a decrease of 18%.

With the exception of homes priced between $10 million and $20 million, new inventory was down in all other price brackets.

“Would-be sellers are ‘married’ at a lower rate than they have been since refinancing or buying in the last four years,” Jonathan Miller, an appraiser for Miller Samuel, who wrote the Elliman report, told The Post. “While many buyers are ‘all cash,’ they are affected by Fed policy, which has created volatility over the past year.”

In other words, owners who have fixed 30-year loans at around 3% are in no rush to move up with interest rates skyrocketing to 7% — a method used to combat ongoing inflation. .

“The challenge with the Hamptons is a combination of a lack of listing inventory and a lack of new supply entering the market,” Miller said. “Since June, new inventory has fallen in four of the last six months.”

Overall, newly signed contracts in the Hamptons fell 53%, from 134 to 63.

“Lack of listing inventory is a national housing market condition and I suspect a recession is the only near-term solution to bring more supply to the market, but who would want buyers in a recession?” They said.

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