The Hamptons Real Estate Boom Is Back, Shattering Records

After a long pause in the Hamptons real estate market, eager homebuyers managed to break through in the fourth quarter — setting new records on a wave of new high-end purchases.

Price trend indicators surged to record highs — more than double those from pre-pandemic — according to a report by brokerage Douglas Elliman, compiled by appraiser Miller Samuel. The affluent area’s median sales price hit $1.85 million last quarter, up 31% from the prior quarter, while average sales price cracked $4 million, an increase of 74%.

“We saw an astronomical rise in high end transactions in the Hamptons this quarter which skewed all the price trends even higher,” said Jonathan Miller, president of Miller Samuel. 

About 8% of the homes sold were priced at $10 million or higher, according to Miller.

Inventory rose for the fourth consecutive quarter as sellers decided to give up their homes — many of which were pandemic purchases. Meanwhile, bidding wars made up one in four sales, indicating that buyers have been sitting on the sidelines, waiting for mortgage rates to drop and inventory to land on the market.

That is expected to continue, especially as millionaires realize they no longer need that second (or third) house. Approximately 80% of luxury homeowners plan to sell a house in the next 12 months, according to a survey by real estate brokerage Coldwell Banker.

Buyers may realize “they were a little over-eager to buy a second primary residence as opposed to a vacation home,” Miller said.