Long Island and North Fork Markets Are Booming; Sales Continue to Decline as Inventory Increases in the Hamptons
New York, NY (July 25, 2019) – Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases the second quarter 2019 Long Island, Hamptons and North Fork Sales Market Reports. The reports showed a booming market on Long Island and the North Fork, while the Hamptons saw slow sales and rising inventory.
Sales were up for the second time in three quarters on Long Island, where the median sales price has not declined year-over-year for twenty-five straight quarters. There was a notable rise in listing inventory, but the numbers are still not considered historically high.
“We’re seeing elevated sales levels with many markets still experiencing rising prices on Long Island,” said Ann Conroy, President of Long Island Division, Douglas Elliman. “While the increase in listing inventory may temper the fast pace of the market heading into the fall, it’s encouraging that falling mortgage rates have helped to reduce the impact of the federal tax law which had a more detrimental effect on other regions.”
In the Hamptons, the market is still challenged by the tax law which has slowed sales and resulted in rising inventory. The median sales price decreased year-over-year for the fifth time in six quarters. However, sales at the high end of the market were in line with quarterly average for the past decade.
“The market in the Hamptons is still showing signs of softness, with fewer sales and an increase in supply,” said Todd Bourgard, Douglas Elliman’s Senior Executive Regional Manager of Sales for the Hamptons. “We are seeing some evidence of stabilization in the near term, though, as sellers in the luxury market are beginning to price closer to actual market conditions.”
North Fork results were very similar to Long Island this quarter, with sales surging and the median sales price rising for the ninth straight quarter. The luxury market did not show quite the same strength, with prices down and inventory up, but sales below $1 million were the highest market share in the past two years.
“Long Island and the North Fork are two of the strongest markets in the New York metro area right now, and the Hamptons market is also beginning to show signs of leveling off in the coming months,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and author of the report. “It will be interesting to see if the region overall can maintain its strength going forward.”
________________________________________________
LONG ISLAND SALES
Overview
“Despite the sharp rise of listing inventory, prices pressed higher.”
– The number of sales edged higher annually for the second time in three quarters
– Median sales price has not declined year over year for twenty-five straight quarters
– Largest year over year increase in listing inventory in twelve and a half years
– First year over year rise in condo listing inventory in nineteen quarters
– Number of single-family sales rose year over year for the fourth time in five quarters
– Most luxury listing inventory in nine years as marketing time expanded
Key Trend Metrics (compared to same year ago period)
– Median sales price increased 4.7% to $445,000
– Average sales price increased 3.7% to $518,119
– Number of
sales rose 1.9% to 6,889
– Days on market was 73, down from 75
– Listing discount was 3.1%, up from 3%
– Listing inventory rose 21.7% to 14,051
________________________________________________
HAMPTONS SALES
Overview
“Sales above the $10 million threshold were in line with the quarterly average for the decade.”
– Six straight quarters of year over year sales declines but the rate fell sharply
– Listing inventory increased significantly on an annual basis over the last three quarters
– Median sales price decreased year over year for the fifth time in six quarters
– Least number of second quarter sales in eight years
– Luxury listing inventory expanded year over year for the eight straight quarter
– The number of $5 million or higher sales equaled the decade quarterly average
– Luxury price trend indicators showed mixed results as marketing time fell
Key Trend Metrics (compared to same year ago period)
– Median sales price declined 4.2% to $850,000
– Average sales price slipped 2.5% to $1,726,987
– Number of
sales fell 1% to 498
– Days on market was 139, down 6.1%
– Listing discount was 10.4%, up from 9.5%
– Listing inventory jumped 84.2% to 2,557
________________________________________________
NORTH FORK SALES
Overview
“Highest market share of sales below $1 million in two years.”
– The number of sales surged year over year at the highest rate in four and a half years
– Listing inventory rose annually for the third straight quarter but remained well below the decade average
– Median sales price has not declined annually in nine quarters
– Second highest total of sales over $2 million in two and a half years
– Luxury median sales price declined year over year for the second time in three quarters
– Luxury listing inventory rose annually for three consecutive quarters
Key Tend Metrics (compared to same year ago period)
– Median sales price rose 8.8% to $644,500
– Average sales price declined 8.2% to $778,830
– Number of
sales jumped 25.5% to 182
– Days on market was 130, unchanged
– Listing discount was 6%, down from 15.2%
– Listing inventory edged up 5.9% to 452
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 118 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado and Massachusetts. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
