Home prices in the Hamptons fell during the fourth quarter last year, according to a recent report from Prudential Douglas Elliman Real Estate.
The report indicated that home prices in the area, often inhabited by homeowners in New York City, fell by 13 percent during the three-month period on a year-over-year basis. The median price of property in Hamptons at the end of December was at $780,000, down from $900,000 in the fourth quarter in 2010.
However, the report indicated that an unusual surge of purchases greater that $5 million was responsible for the high median sales price at the end of 2010.
“The combination of low interest rates and buyers being more confident about the Hamptons resulted in stable sales activity rather than a seasonal falloff,” Jonathan Miller, president of Miller Samuel, told Bloomberg.
Meanwhile, the inventory of homes for sale in the Hamptons thinned by 28 percent during the quarter to 1,165, even as the average number of days spent on the market edged higher.
As home prices drop in the Hamptons, the effects could be felt in the neighboring Big Apple as more homeowners choose to keep their finances spread out across fewer properties. If residents of the city choose to do this, it could make buying a home for sale in New York City a profitable investment if the trend results in a higher occupancy rate.