Luxury Homes in The Hamptons Remain Unsold
Luxury Homes in The Haptons have stopped selling
The amount of luxury homes for sale in the Hamptons jumped to a record of 1,673 in the first quarter of 2009. This represents an inventory that will take 34 months to move at the current sales volumes. According to Miller Samuel, and other real estate advisors, the level of sales is at an all time low – 67% down from 2008.
Median prices are down 28% and the total value of sales in the first quarter is down 78% to just over $140 million. Bloomberg has collected a number of quotes from real estate agents depicting the current scenario:
“This isn’t like your typical Nor’easter where a tree falls and your lights flicker. This is more like a Katrina. It’s going to be a number of years before the market recovers.” Michael Daly, True North Realty Associates
“The sellers are keenly aware that if they haven’t sold in a better market, they really need to adjust their prices.” Judi Desiderio, Town and Country
“It’s a strong indicator for the fact that there’s no market for houses. There are enough of them around you’d be crazy to build one.”George Simpson, Suffolk Research
Price cuts in the region of 50% are now commonplace, which will serve to drive down median prices even further. Clearly, the luxury end of the market has caught up with the general market and we are seeing similar situations around the world. Prices for luxury property on the Cote D’Azur at the very top end of the market are seeing anything up to a 90% reduction. No longer are Russian oligarchs prepared to pay any price for a trophy property. And the more conservative luxury properties are selling (slowly) for discounts of around 50-60%.
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Comments on Luxury Homes in The Hamptons Remain Unsold
A lot of Upstate since the Rust Belt era has been so long mired in a mind-state of depression and self-worthlessness that we collective jump on almost any venture that makes us seem new and fresh again. We seize the first offer that’s made to us, rather than setting standards, alas.
It just shows you that no one is exempt from the financial crises that is now world wide not eve the rich, they too are having a hard time with it and people are taking what they can for their properties which is so sad, lets just hold thumbs that this comes to and end really soon and things get back on track.