Winter may be halfway over, but the East End’s residential markets aren’t showing much promise of thawing.
Fewer homes are selling as a result of rising interest rates and prices didn’t fall much in December across the Hamptons and North Fork, because of constrained supply, according to a monthly report by Miller Samuel for Douglas Elliman. Report author Jonathan MIller is forecasting 2023 as the year of disappointment in the markets.
“Buyers are going to be disappointed because there doesn’t appear to be any chance of price correction,” Miller said. “Sellers are going to be disappointed because they’re not going to get the 2021 high water mark.”
Not be left out, “banks are going to be disappointed because the lending pipeline is going to be quite low,” Miller said.
The story in the Hamptons and North Fork has been the same for some time now: A record hot market in 2021 “obliterated” inventory, which keeps prices elevated despite the market downturn. Higher mortgage rates also disincentivize sellers from listing and sacrificing a lower rate.
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In the Hamptons, new signed contracts fell in December 63.5 percent year-over-year, from 104 to 38. The only price points that didn’t record a fall in sales were homes under $500,000, a tranche in which no sales were recorded, and homes asking $4 million to $4.99 million, which saw sales increase from three to seven.
“The total [signed contracts] is the lowest we’ve tracked since we began in May of 2019,” Miller said.
New listings fell to 44 from 47 over the same period.
In the North Fork, new-signed contracts fell month over month for the third time and new listings fell for the third time in four months.
New-signed contracts fell 32 percent year-over-year, to 17 from 25. All new contracts were signed for homes asking under $4 million.
New listings fell 15 percent year-over-year, to 11 from 13.