We are pleased to present our First Quarter 2022 Hamptons and North Fork Market Report.
After nearly 18 months of record high numbers of sales, the real estate market on the East End experienced fewer transactions, fueled predominantly by the historically low inventory of available homes for sale.
Despite experiencing significantly fewer transactions, demand for real estate in the Hamptons remains strong, as evidenced by the record-high average sales prices as well as the speed at which well-priced properties are continuing to sell. However, with fewer homes coming to market many potential purchasers are unintentionally on the sidelines until inventory rebounds, providing more choices for homebuyers.
Overall, 1Q22 sales in the Hamptons declined 31.6% compared to 1Q21 (from 392 to 268 transactions), and returned to nearly the same figure as the pre-pandemic 1Q20 sales (278). Even with a significant decline in transfers, the average sales price increased by 38%, to $3,177,745 - the highest average sales price on record. The median sales price rose by 21.1% to $1,690,000
As a result of the rise in the average sales price, and a 100% increase in the number of sales over $10 Million, the total dollar volume for 1Q22 declined only 5.6% compared to 1Q21. At $851 Million, this figure is actually 22.6% higher than the total dollar volume in 1Q20 - a quarter with nearly the same number of sales as 1Q22. The 12 sales above $10M in 1Q22, while only 4.5% of the total number of sales, accounted for 33.8% of the total dollar volume for the year.
With a slower pace of sales, Hamptons real estate agents are pivoting from representing multiple buyers to building inventory, working with homeowners who are considering listing properties for sale. With record-high sales prices as an inducement, perhaps we will see inventory begin to grow in the coming months, with an attendant increase in sales to follow.
Philip V. O’Connell
Executive Managing Director
Brown Harris Stevens of the Hamptons, LLC
Executive Managing Director
Brown Harris Stevens of the Hamptons, LLC
