Hamptons Real Estate Roundtable August 2024
How has the sales market evolved since last summer?We do business in ten Hamptons zip codes, regularly, and yet we are Sag Harbor centric. Starter homes there are firmly above a million now. The exceptions under $1M were often those sold for land to build new, and now those are also very hard to find. Prospective sellers are 'cemented' in their low interest rates of just 2-3 years ago, and that includes our cash buyers from $2-$20M that levered in the 'free' money years.
What features and amenities are must-haves for homebuyers’ lately?Hamptons homebuyers have never conformed on style, size, investment range...yet most like a bathroom for every bedroom. Pools are common, and yet, not everyone wants one any more. I remember the seismic shift from 4/2 to 3/3 as common sizing and now we see 7 BR, 8.5 baths as "stock builds" by several companies.
With the presidential election rapidly approaching, are potential buyers and sellers taking a wait-and-see approach? Great question. Markets went up after 9 out of the past 11 election years. 1980 and 1988 were the last two that didn't, with 16% interest rates in 1982 it's easy to see why. This time we are also seeing interest rates coming off 23 year highs, and inventory is well below average. That's three sets of bullish data to suggest that buying before is where the smart money is.
What advice do you give sellers about staging a home?The first response is to empty the house and paint the interior any color you want as long as it's white. That still gets a chuckle, and yet it still makes the house larger, brighter & cleaner for our videos, photography and for open houses & showings. Doing anything more is at risk of a negative ROI on the improvement cost, and some buyers prefer guiding their own vision.
How has the summer rental season performed?Not an ideal year for us old school brokers that offer monthly and full season rentals, as many tenants have shifted to shorter term stays. This puts us out as under two weeks are often not permitted. Personally, I'm OK with that as we aren't in the muffin business, and those that are... still buy houses from us to hotel-motel them.
What solutions are employers finding to house their employees seasonally or year-round?The best time to plant an apple tree is 15 years ago. Business owners are coming to us more often, and we help them with the exact same choices as our clients and customers; which usually means rent seasonally or buy. The economics do filter through to the cost of things, from a restaurant tab to infrastructure, and we are seeing that too.
Any thoughts on the new season of “Selling the Hamptons” that debuted earlier this year?Reality shows are clickbait, and I'd rather spend my free time chewing on tinfoil.
In anticipation of your next question which you still have to write
We were never connected to The NAR, the realtor 'trade organization' that just lost billions in class action litigation out of the midwest. Those suits fully roped in "Real Estate Big Firma" across the country, including many franchise firms operating in The Hamptons and NYC. PS- I invented the term 'real estate big firma' with good humored righteous indignation, a bold choice... I know.
Can you recommend a good real estate podcast?We make content more than watch it, and in right sizing our efforts, no podcast yet. Our content on instagram @SimonTheBroker has some interesting local info. Music to house walk throughs, landscape and house management and some family pics, maybe two recipes a year and even some fishing videos.
