In today’s New York Times > Well Before Summer, Hamptons Luxury Real Estate Is Scorching. It’s an interesting and amusing read about the turnaround in Hamptons real estate, which may even bear some similarities to what’s happening here in the foothills – the Hamptons are also a 2nd home, discretionary purchase market, albeit at a gazillion $$$$ and Up. And for me it’s bit nostalgic too. I spent many summers in the Hamptons from about age13 and into my early 20’s – many moons ago. And it was wonderful back then, easy, breezy and fun, and while it was also a popular getaway from the rigors of life in NYC, it was fairly accessible to those of middle class means. Today, forgetaboutit
Here are a few passages that stood out for me;
Harald Grant, a senior vice president of Sotheby’s International Realty, has already rented out an oceanfront house in Southampton for $550,000 for the month of August alone and has a stack of 14 contracts and purchase memos on his desk representing pending sales of $4.5 million to $25 million.
For high-rolling renters, Mr. Grant has a trio of oceanfront rentals in Southampton that can be had for the summer for $400,000, $600,000 or $800,000. Why pay $25 million to buy, and more to maintain, a summer getaway when you can rent and run? Or, for a million or so, you can rent year round.
(I wonder, is that happening here in the foothills, are would-be 2nd home buyers now opting to rent for the season instead of buying)
“But in general what’s different this season,” Mr. Grant said, “is that in the mind of most buyers, less is more, and nobody wants to be the king of the hill and flaunt their wealth the way people were doing before the recession. (or spend the money for the privilege of being KOTH)
“Folks who spent $20,000 for a month’s rental,” he continued, “may be looking to spend $15,000. Folks who could be driving a Rolls-Royce are settling for a Mercedes. People aren’t saying, ‘I have to have it; I’ll pay anything,’ and writing checks on the spot. An owner who says, ‘I want $32 million for my oceanfront house’ probably isn’t going to get it. He’ll get somewhere in the mid-20s.” (ditto, Aha)
Properties under $1.4 million (their low-end) in turnkey condition are, said Caroline Sarraf of Brown Harris Stevens, “flying off the shelves,
“Value was the word of the year for 2012,” Mr. Gicking added. “The smart money watched and waited patiently for a correctly priced home, and among prime properties in the most desirable areas, we’ve seen bidding wars continuing into 2013, a clear indicator that, after a few turbulent years, buyers are confident about jumping back into the Hamptons market again.”
The record price for a house remains the $60 million paid in 2008 for 108 Gin Lane in Southampton, but not every buyer operates on an elastic budget.
(but even in the Hamptons) Back on less rarefied ground, Ms. Desiderio said, most transactions in 2012 occurred in the $500,000-to-$999,000 range, where shared baths occasionally apply. “There were 542 recorded sales, more than any other price category.”
“For years,” Ms. Saatchi said, “time was on the buyers’ side. They would look and look and from one visit to the next, prices would go down and inventory up. Now, waiting is starting to mean higher prices and fewer choices. As in the city, we’re running out of prime inventory.” (Yes - for the lower-end and screaming deals in almost any price range and maybe for prime properties that are attractively priced, but otherwise No)
Well Before Summer, Hamptons Luxury Real Estate Is Scorching
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