New York’s tony Hamptons market is seeing a massive decline in new contracts as interest rates remain at an all-time high.
Low inventory is one of the leading causes of the falling contracts – which fell more than 50% last month from a year ago, according to a new report by Douglas Elliman and Miller Samuel.
Since June 2021, new inventory has fallen annually in all but two months.
In November, for example, new listings went from 99 to 81 — an 18% decrease.
With exception to homes that range between $10 million and $20 million, new inventory was down in all other price brackets.
“Would-be sellers are ‘wedded’ to the low rate they have enjoyed since a refinance or purchase over the past four years,” appraiser Jonathan Miller of Miller Samuel, who authored the Elliman report, told The Post. “While many buyers are ‘all cash,’ they are impacted by Fed policy, which has created volatility over the past year.”
In other words, owners who have fixed 30-year loans at around an average 3% aren’t in a hurry to move with interest rates at a sky-high 7% — a method used to combat ongoing inflation.
“The challenge with the Hamptons is the combination of the lack of listing inventory and the lack of new supply entering the market,” Miller added. “Since June, new inventory has fallen in four of the past six months.”
Overall, new signed contracts in the Hamptons fell 53%, from 134 to 63.
“The lack of listing inventory is a national housing market condition and I suspect a recession is the only near-term fix for bringing more supply into the market, but what buyer would wish for a recession?” he said.