Report from the Hamptons
The Hamptons real estate market seems to have some similarities with the Jersey Shore market, so its worth pointing out that slows are sale out there too.
Driving around the Shore this area, and reading this article, I think it is becoming apparent that some Realtors and homebuilders have grossly overestimated the number of people that can afford to pay $3 million or more for a home in the greater metropolitan area. I don't doubt that plenty of people can afford expensive homes in NY, NJ, and CT, but I think the number is smaller than most people think. Ocean Avenue in Sea Bright and Monmouth Beach must have about 7 to 10 homes on it that are at least $3 million and they don't seem to be moving very quickly. Spring Lake and Sea Girt also seem to be filled with huge $3 million plus mansions but I don't think that much money exists in our area to absorb all the inventory.
"Aug. 4 (Bloomberg) -- New York's hottest summer spot for investment bankers and movie stars is cooling as mortgage rates climb. In a year of record Wall Street bonuses, home sales in the Hamptons fell 18 percent, signaling the end of a five-year boom.
A total of 1,727 homes were sold during 2006's first half in the Hamptons on the eastern tip of Long Island where billionaire investor Ronald Perelman and movie director Steven Spielberg own summer estates. That's down from 2,106 a year earlier, according to data compiled by Suffolk Research Service Inc., a property records company in Southampton, New York. The drop compares with a 4.3 percent slide nationwide"More...
posted by Little_Silvered at 9:15 PM
2 Comments:
Where do most of the buyers who purchase these 3 million dollar mansions come from? NYC and northern NJ where the RE market has cooled considerably. If they can't sell their mansions up there, they aren't buying down here - it's that simple.These sellers and agents better get real about their pricing.
I've been looking to buy on the Jersey Shore (W.C.) Huge inventory nothing selling. I'VE BEEN WATCHING THE PROPERTY TRANSFERS. People advertise DRASTICALLY REDUCED!! MOTIVATED SELLER!! Check to see what they pd for it and they are STILL trying to make money! They haven't felt the pain yet. Give them time. It will be a bloodbath.
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