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What Sizzled This Summer in the Hamptons? 4 Experts Weigh In

We don’t want to believe that summer is over. But kids lined up at school bus stops and Halloween (or, God forbid, Thanksgiving) decorations on display are the sad proof that the fun is over and the serious business of autumn is underway.

So it’s a perfect time to take a step back and look at what happened this summer in the nation’s most iconic, warm-weather luxury real estate market: The Hamptons. The towns and villages on the Atlantic shore mere hours from Manhattan are more than just a summer playground for New Yorkers. They are definitive stomping grounds for the rich, the strivers, and everyone in between.

They are world-famous for their pristine beaches, multimillion-dollar oceanfront estates, action-packed nightlife, and fine lobster rolls.

They’re also notorious for their traffic jams, high prices, and packed-to-the-gills summer rentals, dominated by the party-hearty millennials. This year local authorities attempted to crack down on high-turnover summer rentals, but Vanity Fair still labeled this past season as “Only Slightly Less Hellish than Westeros.”

Thrones and complaints aside, as the Hamptons go, so goes the luxury market in New York and arguably around the country. So, we asked some real estate experts to review trends they saw in the real estate market this summer. Here’s what they said.

Modern homes are hot

Rylan Jacka, Sotheby’s International Realty:

“In the first half of the summer we ran around like crazy meeting would-be buyers, but there weren’t a lot of transactions until the second half of August. Montague near the ocean is superhot, and so is Sag Harbor. There’s a strong resurgence of wanting to be near a village, a good proximity to restaurants and cafes.

“A lot of people are looking for modern architecture (without attics), because building codes are getting more restrictive and it’s harder to build a bigger house. But modern homes are harder to come by, and they usually go very quickly. Prices aren’t going up, so pricing appropriately becomes very important in today’s market. The kitchen is still the center of the house, and everyone wants two dishwashers, two sinks, a beverage center, and butler’s pantry.”

Our takeaway: Rules and regulations might make building modern mansions more difficult, but money always talks.

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$1 million is the magic cutoff

Arlene Reckson, Corcoran Group:

“The summer was a little softer than in the past. Since the Hamptons are beach communities, everybody still wants to be as close to the ocean as possible. Everybody wants a heated pool and central air. The properties under $1 million are very, very hot. Once you get higher, there is more competition.

“One trend in the rental market is that people don’t come out for the full summer, as they used to, but for only a week or two. They think we’re travel agents.”

Our takeaway: Short-term rentals are popular, but if you can find a spot priced under a mil, make sure to snap it up.

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Go west, Hamptons buyers

Enzo Morabito, Douglas Elliman:

“We are a total reflection of Manhattan: They’re the dog, we’re the tail. It’s become a buyer’s market, which is different from 2015 when it was a pretty healthy market. The top end of the market just before spring was dismal at best.

“Properties over $10 million are sitting, and there’s a tremendous amount of inventory. But at the lower end, from $400,000 to $1 million, things are selling very, very briskly.

“We’ve noticed a big trend of people looking at properties west of the Shinnecock Canal, the famous benchmark between east and west communities. For years, east of the canal, like Southampton and East Hampton, had been the most expensive. But now, west of the canal—Hampton Bays, East Quogue, Westhampton Beach—is on fire. People like living in a small community.”

Our takeaway: Again, it’s a seller’s market if you have a Hamptons property with a price tag under seven figures. But, buyer beware, the tippy top of the market is slow. And keep an eye on West Hamptons towns.

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Clouds gather on the horizon

Bruce Davidson, Town & County Real Estate:

“Rentals are off a great deal, and somewhere along the line that will affect sales in the future. People don’t feel they have to be here all the time, just a week or two. And their mindsets are different; they’re using Airbnb. Traditional Realtors® can’t do a week at a time; we want to do months.

“Also, people now want to be in villages, like Quogue, where they can walk to things and that have their own police and fire departments.”

Our takeaway: Short-term rentals are adding turmoil to the market and could cause pricing problems down the line. Check out Quogue for summer 2017.

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