The market for luxury homes in the Hamptons, the summer playground for Wall Street’s wealthiest, is losing some of its luster as financial markets limp along for a second year.
The average price of the ten most expensive homes sold in this cluster of towns, villages and hamlets on Long Island’s east end was $35.5million in 2015, 20 percent lower than the $44.6million recorded the year before, according to real estate brokers Town & Country Real Estate in East Hampton.
That’s still the second-highest level, and well up from 2009, when the financial crisis left the top ten languishing at an average of $15.9million in 2009 – but Judi Desiderio, chief executive of Town & County, has been active in Hamptons real estate for three decades and says it’s still a meaningful decline.
The top ten numbers may be skewed by one or two of the highest-priced sales, but a wider survey by brokerage Corcoran Group shows the median price for the most expensive ten percent of Hamptons sales (57 homes), declined about four percent to $7.6million in the fourth quarter of 2015 from a year earlier.
‘We won’t see this again until 2021, as it seems to run in seven-year cycles,’ Desiderio predicted.
The prices of luxury homes in the Hamptons and the success of Wall Street are inextricably linked, especially the level of bankers’ bonuses, as they often finance second homes, said Anthony DeVivio, Hamptons managing director for another brokerage, Halstead Property.
This is pretty much a “made for the tabloids” story, but what the heck, it ties in with the post below, and I need something to entertain the readers (“reader”, per Walt) while I’m away this morning, so I’m going with it.