We are pleased to present our Third Quarter 2021 Hamptons and North Fork market report. After a year of record sales activity, the real estate market is adjusting to one of fewer sales at higher prices.
Year-to-year comparisons during periods of volatility can be misleading and should always be viewed in context. The Third Quarter of 2020 was truly exceptional. Pent up demand was released as business restrictions started to lift, compounded by a considerable exodus from more urban regions to the perceived safety of the East End. The result was a record number of sales and prices from 2Q20 through 2Q21.
As sales inventory remains historically low and buyers feel less urgency to act quickly, the number of sales has responded accordingly. Third Quarter 2021 transactions were considerably lower than 3Q20 (a 36.1% decline), but were nearly equal to those of 3Q19.
Additionally, while the Total Dollar Volume generated dropped 9.6% from 3Q20, it was 83.7% higher than 3Q19.The average sales price in the Hamptons was $3,082,134 during 3Q21, an increase of 41.4% from 3Q20, and an all-time record high. The median price rose 34% to $1,695,000, the highest Third Quarter median price to date. The conclusion? Despite a marked decline in sales compared to the same period last year, demand for Hamptons real estate remains strong.
Looking ahead, uncertainties in the U.S. and global economies - from supply chain difficulties, labor pool shortages and budget battles in Washington - are factors we will want to watch closely. Time will tell how the market will develop in the Fourth Quarter, but as the following data shows, real estate in the Hamptons continues to demonstrate its long term strength and resilience.
Philip V. O’Connell
Executive Managing Director
Brown Harris Stevens of the Hamptons, LLC
Executive Managing Director
Brown Harris Stevens of the Hamptons, LLC
