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Real Estate Price Bump, Luxury Boom

Wed, 07/29/2020 - 19:35

The pandemic has caused a boom in luxury home sales and an increase in real estate prices on the East End, according to second quarter reports from the Douglas Elliman and Brown Harris Stevens agencies.

Douglas Elliman reported a slightly more than 13 percent decrease in overall home sales as compared to the same period in 2019, but the average sales price rose by more than 21 percent to $2,090,761, the highest amount since 2015. Brown Harris Stevens’ sales were down a more modest 3 percent, and the average sales price increased by 14.5 percent to $2,415,766.

The latter firm attributed the increase to a spike in sales of homes priced at $10 million and above, and Douglas Elliman noted a 7.1 percent increase in the price of luxury homes, which it defines as the top 10 percent of most expensive homes.

“While a flurry of new rental activity marked the beginning of the quarter, sales activity has since surged, with many customers looking not necessarily for a summer or vacation home, but a truly second home as the live-work experience has evolved during the epidemic,” said Robert Nelson, the executive managing director of Brown Harris Stevens.

According to that firm’s report, there was actually an increase in home sales in East Hampton Village, areas of East Hampton outside of the village, Bridgehampton, and North Haven, but overall sales in the region decreased because of declines in other hamlets and villages. In Montauk, for instance, nine houses were sold during the quarter compared to 20 during the same period in 2019. In Sagaponack, no houses were sold compared to five last year, and in Sag Harbor Village, six houses were sold compared to 15 last year.

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