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The unprecedented frenzy for a Hamptons home that began last year has calmed, but the South Fork real estate market of late is by no means slow. Inventory has tightened significantly, which has buoyed prices and led to quick turnarounds. It’s common for new listings to receive multiple offers almost immediately, often driving the final sales price above the asking price. With low interest rates available in addition to lifestyle advantages, the allure of owning a home on the East End is as strong as it has ever been.
With the delta variant and other iterations of the virus that causes COVID-19 bringing new waves of infections globally and prolonging the pandemic, the factors that bolstered the Hamptons market — security, space, restricted travel, and the option of remote work, to name a few — are still very influential.
To look back on the year so far, take the pulse of the market right now and get a sense of what’s to come for Hamptons real estate, The Express News Group asked an esteemed group of local real estate professionals to share their observations and outlooks.
As summer enters its final stretch, what is the general mood of the Hamptons market?
Judi Desiderio: Pre-delta or post-delta? Before the variant became another global concern, things had calmed down to more of a balanced market. It seemed many who spent the past year out east were planning to move back to the city — now that “fear factor” is starting to creep back in.
Gary DePersia: The market is very robust and the mood is optimistic. I still see bidding wars, multiple daily house showings, very eager buyers and brokers moving aggressively to capitalize on the lack of inventory. As an example, a new listing I debuted the last week of July had 10 showings the first day. That’s incredible.
Aimee Fitzpatrick Martin: Every broker I know is saying the same thing: “I need more listings!” During the week of July 20, 35 homes from Remsenburg to Montauk went into contract, compared to the staggering 91 listings that went into contract this same week in 2020. The buying frenzy has slowed down a bit, and I think we’re all enjoying a little breather. It’s not that buyer interest has dropped, however. The problem remains a severe lack of inventory. It’s estimated that 40 percent of the available inventory has been depleted since December 2020 — just an unbelievable statistic. The good news is that I’m starting to see the number of listings coming on the market each week slowly increasing. Sellers get it: There’s never been a better time to sell in the Hamptons!
Jennifer Wisner: I believe the general mood has settled down a bit, but many of my clients are still looking for new-to-the-market sale listings and renewing their summer leases from 2021 for 2022, or entertaining a new rental property.
Eve Combemale: The general mood of our market is encouraging and optimistic. While the frenzy we experienced throughout 2020 and early 2021 has subsided, market activity is still robust, with fewer but appreciable bidding wars. The desperation many buyers felt to escape the density of the city during the pandemic has abated, but the ongoing lure of both seasonal and year-round living in the Hamptons is alive and well. One dynamic we’re seeing more of is a greater resistance to current pricing. Some sellers, wanting to take advantage of increased demand and record numbers, are listing at aggressive prices. Many buyers are settled in a summer rental and are not feeling the urgency to pull the trigger right now. But as long as supply is replenished at reasonable prices and transactions continue, the mood will remain positive.
Kalen Raynor: The Hamptons market is still strong. There is still a lack of inventory and a great demand of buyers looking to purchase here.
Cindy Scholz: From most clients, there is an overwhelming sense of gratitude to call the Hamptons home or have the ability to use the Hamptons as a second-home outlet. Renters and first-time homebuyers are still eager to own a piece of the Hamptons.
Todd Bourgard: The mood of the Hamptons market remains very upbeat amid continued strength. We have a number of homes coming on the market that are properly priced, and we have even more buyers ready to purchase. We’re still seeing multiple bids on properties that are priced correctly — this has been the key — and I think we’ll continue to see this through the fall.
If Manhattan businesses call employees back to the office this fall, will that put an end to the Hamptons’ hot streak?
Judi Desiderio: By “put an end to the Hamptons hot streak,” I assume you’re referring to the buying frenzy — in which case the panic buying ended in March. But the demand remains relatively strong by normal standards.
Gary DePersia: The Hamptons will always be hot. People now realize it’s in their best interests to have a go-to place in the Hamptons as a hedge against future national and global crises, and that they can run their businesses very effectively from here.
Aimee Fitzpatrick Martin: According to the building management firm Kastle Systems, less than 21 percent of employees in New York City were back in their offices as of June 9. Who knows what will happen this fall given the uptick in COVID cases? While some large companies are demanding workers to return to the office, many are not. I believe we’re living in a time with monumental societal shifts where workers will continue to embrace (or even demand) a remote or hybrid work/live scenario. The Hamptons will continue to be a housing market in demand, whether for primary or secondary homes.
Jennifer Wisner: I feel remote work is here to stay, and the Hamptons will always remain a hot spot. While the streak may end for some, weekends and holidays can always be enjoyed like in the past.
Eve Combemale: With uncertainties around the delta variant, it’s unlikely that all Manhattan businesses will be calling employees back to the office this fall, and many business owners are embracing the hybrid model as a viable option. While the energy of New York City will always be a magnet for some, the pandemic has broken down the geographical barriers that kept employees tied to the city. During the past few months, activity in our market has begun to stabilize, but prices remain high and days on market are consistently lower than the prepandemic average. Buyers are active and still looking for more outdoor space, designated home offices, and the idea of “home” as a retreat. If inventory continues to increase at realistic prices, our market should remain strong.
Kalen Raynor: I believe the market will remain strong, as having a home in the Hamptons is no longer just a luxury, it is now a necessity.
Cindy Scholz: Many people are heading back to the city. The city market is moving, but that has not had a negative impact on the Hamptons, given the limited and finite amount of inventory on the East End. Choosing the Hamptons or NYC has never really been a decision; most of our clients have homes in both markets and value the perks of each.
Todd Bourgard: I don’t see this market slowing down in the foreseeable future. There seems to be much more flexibility to be had in the workplace, and I hear from a lot of people who have moved out here that they will plan to be back in a city office maybe one or two days a week. Many buyers came out here for the quality of life, and now with the proven ability to work remotely, I think many will stay and more will continue to come to the Hamptons.
What will change for the Hamptons market when the New York State moratorium on evictions and foreclosures is lifted?
Judi Desiderio: Little to none.
Gary DePersia: I see no changes. I have had zero rental holdovers and no foreclosure issues. For me, it’s a non-event for the Hamptons.
Aimee Fitzpatrick Martin: I don’t think much will change in most areas of the Hamptons. My friend and go-to mortgage expert Patrick Campbell from Valley National Bank tells me, “It takes time for a foreclosure to happen, and since there is a lack of inventory any home would probably sell before a foreclosure proceeding could be finalized.” While we’ll see some foreclosures, he said that banks and the government have done a great job, for the most part, to minimize that.
Jennifer Wisner: Homeowners will feel more secure when entertaining a summer, year-round, or winter lease.
Eve Combemale: The moratorium has been a lifeline for millions suffering from side effects of the pandemic. Many of these people are in communities where job losses are high. While rents in the Hamptons are notoriously steep and often prohibitive, I know many local businesses that are having trouble filling positions. I don’t think a high percentage of tenants in the area are benefiting from the moratorium.
Kalen Raynor: As the moratorium lifts, we will definitely start to see more properties coming on the market. However, this will take time, and I think it will be years before we see the true effects these moratoriums have left.
Todd Bourgard: I don’t really foresee any change here in the Hamptons market. We didn’t see many instances where tenants stayed past the terms of their lease agreement. It just didn’t affect us.
What should buyers be doing so they don’t miss out on a home they want?
Judi Desiderio: Get your ducks in a row — have proof of funds or prequalification letter, have an inspector ready to go in upon O&A (offer & acceptance), have a lawyer on standby — make sure they have the time to give your deal the attention it requires. Don’t drag your feet on signing contracts
Gary DePersia: Bid intelligently and aggressively. There is not going to be a glut of new options on the market anytime soon. So if a buyer finds a house that checks most of the boxes they are looking for, don’t wait for that mythical “perfect” house to come along before making a decision.
Aimee Fitzpatrick Martin: Buyers need to be prepared to act fast and have their “team” of professionals lined up in advance of putting in any offer. If they’re financing, they need to find a good mortgage expert and get preapproved. Have a good home inspector and termite inspector available at a moment’s notice. Hire a local real estate attorney and consider having a standard contract drawn up to submit along with the offer. What seller wouldn’t be impressed by that? Most important, buyers need to listen to the advice of their broker and realize that — in this strong sellers’ market — now is not the time to put in a lowball offer. Come in with a full-price offer (or close to it), especially if the house is priced under $2 million, which is most in demand.
Jennifer Wisner: If they are serious about the home and have a good relationship with their agent, they should not hesitate about starting a dialogue with an offer.
Eve Combemale: The No. 1 rule is to move quickly, both with a strong offer and a clear understanding of the seller’s goals. Have your agent help determine what specific terms might give you an advantage. For example, offering flexibility on a closing date can make the difference in whether one offer is accepted over another. In some cases, a seller would rather have a few more months in his/her home than a slightly higher price. Mortgage contingencies are a big “no,” and while financing is fine, have your bank lined up and ready to commit. The seller just wants to know you can perform, regardless of whether it’s an all-cash deal or a bank at the closing table.
Kalen Raynor: Buyers need to be preapproved and ready to go. If you find a home you love, do not wait. Make an offer and be prepared to sign contracts as soon as possible.
Cindy Scholz: Buyers should have their financing plan in place, and as the fall gets busy with social obligations, be sure to carve out time to tour homes in person during the fall weekends as we anticipate more inventory to come on after Labor Day.
Todd Bourgard: What buyers shouldn’t do in this market is hesitate. I would advise buyers to assume there will be several buyers bidding on the property, and come in strong on your first offer, removing all contingencies. I usually say, come in at the maximum price you are willing to lose it at.
In many ways, the pandemic changed how the real estate industry conducts showings and does business. What changes are here to stay?
Judi Desiderio: Photos, floor plans and virtual walk-throughs are standard — but people generally want to personally inspect, walk through and check out the surrounding areas before committing. E-signatures are here to stay.
Gary DePersia: I see a continuation of certain trends that were building prior to pandemic: customers no longer going in your car to view houses; customers not going to your office but meeting you at the first house; and new trends like more FaceTime showings prior to viewing in person.
Aimee Fitzpatrick Martin: New York State no longer has a mandate for real estate brokers or salespeople to wear masks or have COVID forms signed. It’s now up to the preference of individual agents and the wishes of homeowners. I keep hand sanitizer handy prior to any showing and refrain from shaking hands. I find many buyers and sellers just volunteer, upon meeting me, “I’ve been vaccinated.” People are more aware of social distancing as they tour a house. Unfortunately, I fear that things may go back to mandated requirements due to the uptick in variants and rise in cases.
Jennifer Wisner: Virtual closings, open houses with appointments and FaceTime video tours will remain part of the process going forward.
Eve Combemale: While most agents have relied increasingly on technology over the past few years, concerns about in-person health and safety during the pandemic has had us depending on it almost entirely. Property videos have become an important part of marketing, particularly for turnkey properties and new construction. Strong consumer demand for video content suggests it is here to stay. 3D virtual tours, like Matterport, and live video walk-throughs are common tools used to showcase properties and even replace open houses. I’ve done more FaceTime walk-throughs in the past 14 months than in the previous 14 years. In addition to embracing new technology, authentic, earnest customer service is more important than ever. Building trust and long-term relationships by providing information and service that help our clients make decisions is critical at a time when information is shifting so rapidly.
Kalen Raynor: Virtual showings and Zoom are here to stay.
Cindy Scholz: A silver lining of the pandemic for real estate is the focus on elevated marketing and digital content. Many buyers need to make a trip out to tour homes. Video and 3D tours save time for buyers, sellers, and agents.
Todd Bourgard: I think a lot of the protocols that were put in place will stay, particularly around how we manage people and crowds at a showing. I don’t think we’ll return to the days of 50 people coming through an open house all at once, and we’ll see Realtors continue to make appointments and regulate how many people are coming to view a home at the same time. We’ve also seen the number of people required to attend things like inspections and closings be more closely managed and that will likely stay the new normal as well.
What is the outlook for the 2022 rental season?
Judi Desiderio: It’s already begun!
Gary DePersia: It will be strong.
Aimee Fitzpatrick Martin: Historically, the rental season always kicked off around Presidents Day, but in 2021 a lot of the inventory was already gone by then. I think 2022 is going to be a huge rental year because there’s such limited sales inventory. Buyers who couldn’t snag their dream home in the Hamptons this year may just end up renting instead in 2022. Any homeowner who wants to rent next year should get their pricing updated and home listed now. And anyone considering renting next year should get an early start in their search.
Jennifer Wisner: The outlook for the 2022 rental season is great! I already have tenants asking to renew their leases, and I have received many calls and emails with inquiries from other clients.
Eve Combemale: The single most important determinant of next year’s rental season is what the COVID variants and travel restrictions will look like come spring 2022. If Europe and other international destinations are off the table, 2022 should be a strong season. Though many new homeowners might offer up their recent purchases for rent, thereby increasing inventory, the demand for chic, fresh, renovated homes is consistently high. These types of properties get rented quickly at premium prices year after year.
Kalen Raynor: The 2022 rental season will be fantastic. As restrictions lift, people are ready to be out here again and really enjoy their time here.
Cindy Scholz: Everyone wants to extend summer. September and October should remain relatively busy, and as it gets colder, the demand will decrease. The desire for year-round rentals is diminishing. Renters are already looking for 2022 summer rentals.
Todd Bourgard: I think we will go into the 2022 rental season the same way we went into the 2021 rental season, and that’s strong. People have always wanted to come to the Hamptons and will continue to do so.
What are you going to remember most about summer 2021?
Judi Desiderio: Traffic — and a very rainy July! But that’s okay, because most of us in the industry didn’t have a day off anyway — ha!
Gary DePersia: Forty-eight degrees over Memorial Day weekend, and a wash-out over most of Fourth of July weekend. On the plus side, the return of Sunset Beach with sultry Sunday evenings on Shelter Island and other restaurants returning to some normalcy. Let’s enjoy it while we can.
Aimee Fitzpatrick Martin: The summer kicked off with an almost giddy optimism and relief that things were almost back to normal. People were doing their civic duty and getting vaccinated in large numbers. We could go to restaurants and beaches more freely and, once again, gather in larger groups with friends. The smile never left my face as I watched the Southampton Fourth of July Parade and fireworks from the Great Lawn in Westhampton Beach. As a board member of the Westhampton Beach Performing Arts Center, it was so exciting to see our beloved theater reopen to audiences! And now, I feel a growing sense of uncertainty as we head toward Labor Day with the fear that restrictions of some sort may come back. We’ve all learned that we need to savor every beautiful moment that life gives us.
Jennifer Wisner: The frenzy of multiple offers, working 24/7, sealed bids, waiting for new inventory and properties going into contract ASAP.
Eve Combemale: How grateful I feel being able to gather with friends and family in person. I might have taken “normal activities” for granted in the past but now have a deep awareness of and appreciation for how lucky I am to be able to return to my regular activities.
Kalen Raynor: What I will remember most about summer 2021 is the joy of realizing how wonderful it is to truly live in the Hamptons!
Cindy Scholz: This summer was my first year working full-time in the Hamptons residential market. It is a unique summer allowing me to connect with my clients differently. Buying a beach home is a unique process and comes along with more excitement than the essential apartment. I will remember how thankful I am that I get to sell some of the most beautiful homes in the world.
Todd Bourgard: When I look back on this summer, I’ll always remember the crowds and the towns being a buzz in a way that really reflects the strength and power of the market. Our sidewalks are full and our restaurants and cafes are full, even in the middle of the week. There is a feeling that the Hamptons has really become a year-round community and that’s what I’ll remember most about this really incredible time and place.
27east on Aug 9, 2021