Contract signings for single-family homes on the South Fork shot up by 121 percent in July, compared to a year earlier, according to The Elliman Report, continuing a surge that began in June, when new signed contracts were up 89 percent.
The contracts signed in the last two months more than make up for the deals that didn’t happen earlier due to New York State’s effective shutdown. The signings — nearly 100 percent of which are expected to lead to closed sales, if history is an indicator — come after Manhattan residents seeking refuge from the pandemic depleted the Hamptons’ rental inventory and drove up rental prices. Many East End real estate professionals have said that factor turned would-be renters into buyers instead.
As the COVID-19 pandemic emerged in New York State, contract signings on the South Fork plummeted in March and then hit a nadir in April. But in May, signings picked back up again. Year-over-year, May signings were steady here, while the rest of Long Island and Manhattan were seeing a continued crash.
By far, the 267 single-family home signings recorded in July made for the busiest month for Hamptons real estate in more than a year.
The Elliman Report notes that year-over-year trends may be impacted due to the source of the number of contract signings changing from Out East to East End LI MLS in April.
Contracts for houses valued at less then $500,000 — of which there aren’t many left — fell from seven last July to just two in July 2020. Fewer houses entered contract for more than $10 million, dipping from 10 to four. But at price points in between, the rise in the number of sales was unheard of.
Between $1 million and $2 million proved to be the most popular price point, with 84 contracts, a 140 percent increase. Between $2 million and $4 million, there were 78, which is a 271 percent rise.
July was also the second month in a row that signed contracts surpassed new listings, which means the housing stock is selling faster than it is being replenished. Though the number of new listings was 203 percent higher in July year-over-year, the listings just couldn’t keep up with the pace of sales entering contract.
July also saw 10 signed contracts for condo sales. That’s two fewer than the same month a year prior, but still better than each of the 11 months that came before.
