I know the Hamptons aren’t Greenwich

But we share the same buyer pool – really. A surprising number of Greenwich homes are occupied only on weekends and, more important, financial services industry folks buy in Greenwich and Long Island. So news that the number of sales dropped 67% out there in the first quarter is at least somewhat relevant to home sellers here. In fact, I believe the Hamptons did better than we did.

Prices Plummet

The median sales price fell 28 percent from the year earlier to $698,461, Town & Country said. The decline was largely due to fewer sales of $5 million or more.

The total value of all real estate sold in the Hamptons in the first quarter fell 78 percent to $140.2 million.

In Southampton Village, home to the most expensive property sale in 2008 at $60 million, transactions declined 85 percent in the quarter to just three houses. The total value of all homes sold in the village was $2.8 million, a 98 percent decline from the year earlier, when $166.3 million in property changed hands.

In East Hampton Village sales fell 81 percent, also to three houses. The total value of all homes sold there was $4.1 million, a 95 percent decline.

“Those are your iron-clad, been-there-for-over-a-hundred- years, been-used-by-the-Kennedys areas,” said Desiderio. “It’s the blue-chip, best-of-the-best. I would never expect that.”

Nobody expects the Spanish Inquisition.

12 Comments

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12 responses to “I know the Hamptons aren’t Greenwich

  1. anonymous

    Need to dissect data a bit, CF

    Aside from a shack or two, nothing sold in EHampton or Shampton in 1Q….kinda illiquid, no?

    No one “needs” a Hamptons house; pre-mid-’90s, notion of a >$5MM Hamptons house (w/perhaps 12 wkends/yr use via copter commute from Manhattan or G550 from Westchester) was foreign; in early ’90s, Wasserstein bought a ~$5MM house on Further Ln and many thought he was insane to pay so much for a wkend house….fashions change

    Greenwich (even FPC waterfront) is a hell of a lot cheaper than Manhattan’s 15 CPW and it’s primary shelter, so, if anything, Hamptons and Aspen will do worse than “frugal lifestyle” suburbs like Greenwich vs 15 CPW/E or SHampton/PalmBch/Aspen and NetJets G550s to reach all the damn houses

    • christopherfountain

      The reason I see it as relevant, anonymous, is that, just like the Hamptons, Greenwich hasn’t seen a house over $7 million sell in months. The market is non-existent. Similarly, the idea of using Greenwich houses as weekend homes is pretty dormant too. On the plus side, if Blumberg is right when he warns that NYC is going bankrupt (and I think he is) I see New York returning to the misery of the Lindsey, Beame and Dinken years, with crime out of control and punitive taxes. If so, Greenwich will look pretty good.

  2. Walt

    I am looking forward to a summer in the Hampton’s. It never get’s old. Here is a pic I took recently. Recognize them?
    http://jjb.yuku.com/topic/496372
    Tea is hawt, but she is no Bar what’s her name. That is for sure. We hung out and had some laughs. I told her about my “Mr. Noel Takes a Vacation” treatment and she wants in!!! But that part is Bars. But I did ask Tea for Bars number and I think she may deliver.
    And can you belive Duchovney stuck me with the tab? What a putz. But he did commit to invest in FGG’s new fund. What a schmuck!!!
    OFF TO WORM!!!
    Your Pal,
    Walt

  3. WaitingToBuy

    Interestingly enough, the $60mm Hampton sale (which is the largest price ever paid) was made by a Greenwich hedge fund manager.

  4. SizeBuyer

    CF and anyone else who thinks Greenwich will benefit from NYC collapse,

    Greenwich benefits only if potential buyers have nothing to sell, correct?

    This notion of Greenwich or anyone town benefiting from a NYC collapse is only possible if you have nothing to sell and you just pick up and move here. However, I don’t think that is even close to the reality of the situation for most.

    • christopherfountain

      Sizebuyer, I base my belief that Greenwich will benefit from NYC’s collapse from talking and working with buyers from that fair city. They all have preperty there yet are still ready to get out before the city falls apart. Admittedly, these are people with enough wealth to buy Greenwich property regardless of when they sell their NYC co-ops, or for how much, but hey are quite real. There may be lots of people who will be trapped in the city, unable to move – we need only a few hundred (or less) to make a dent in our inventory.

  5. SizeBuyer

    That maybe true but I don’t think there are enough to offset the inventory for Greenwich or any other metropolitan suburb. It’s a handful at best.

    I have no data to back that up though

  6. SizeBuyer

    great article…politicians are on cloud 9 (not just NYS politicians)

    the arrogance is apauling (spelling? too lazy to look up it’s saturday).

    http://online.wsj.com/article/SB123940286075109617.html

  7. PVL

    The lakeside chateau in New Canaan that failed to sell by auction a few months ago–and posted a couple of items about– seems to have sold for $5.5M. That’s a 20,000 square foot main house with a lake, separate staff house and over six acres of property in a prime estate area.

    If it was an arms length transaction, it means that the buyer paid zero for the land and only $275 per square foot for the structure. No way you can reproduce the structure for $275 psf.

    What does that tell us about high end real estate in Fairfield County?

    Look out below.

  8. Walt

    SizeBuyer:
    It’s “appalling”. But don’t worry about it. S.I.H!!!
    Off to DINNER!!!!
    Your Pal,
    Walt

  9. SizeBuyer

    Walt,

    Thanks Pal!!!

    S.I.H.??? (Staten Island Hospital)?

    How was dinner?