Hamptons Home Prices Drop From 2022 But Are Still Four Times Higher Than National Average

Homes in the Hamptons have dropped in price this quarter but are still riding the huge rebound since the pandemic lows.

The average sale price of a home on Long Island's luxury shore is $2.2 million, down almost 25% from last year's $2.9 million, according to Douglas Elliman's Hampton market report by Jonathan Miller.

This is still more than four times greater than the national average for homes which is $495,1000, according to the St. Louis Fed. In the Northeast, homes are more expensive, going for $966,000 on average.

Miller, CEO and president of Miller Samuel Inc., told The Messenger that the "Hamptons, despite it being a sort of luxury sub market connected, joined at the hip with Manhattan in New York City ... is the same narrative we're seeing across the U.S. where the market is characterized by a slowdown in sales initially because of a spike in mortgage rates, but also because inventory remains chronically low."

The median price in the Hamptons is $1.4 million, which is more than 70% higher than before the pandemic.

Listing inventory in the Hamptons is 996, up 6% from last year, but inventory is still 62.7% less than before the pandemic started.

The market in the Hamptons has rocketed since before the pandemic. In the first quarter of 2019, the average home sold for $726,376.

Luxury homes, measured by properties in the highest 10% of sales, have seen a similar price drop, going down to $8 million from $12 million last year.

Miller notes that there are far fewer transactions at the "very top of the market." He said that in the Hamptons this quarter there were only 21 transactions that were $5 million or higher, compared to last year when there were about 56.

Housing "supply is chronically low," according to Miller.

While prices dropped this quarter, these high-price tag homes have grown is price over the pandemic. In the third quarter of 2019, the average luxury home went for $5.2 million.

In this quarter, one out of five luxury home sales ended in a bidding war, according to Miller. Low inventory in the luxury markets led to the record number of bidding wars for the high-priced homes.