Have Hampton prices peaked?

Real Estate Weekly, Oct 18, 2000

When an East End homeowner, whose house was on the market for $1.6 million, was offered his full asking price recently by an eager buyer, he declined. He wanted to wait to see if he could "get more later." According to Stuart Epstein, owner of Devlin McNiff Real Estate, that may have been a mistake. Epstein observed, "We are probably at the peak of this current cycle in the market. Now, more so than before, sellers in particular should be very aware of pricing and the offers they are getting."

Epstein said that for the last nine years, the residential sales market in the Hamptons has improved on a yearly basis, with the most noticeable improvement occurring in the last four years. During this heady real estate cycle, an attitude of "I don't care what price it is -- I want it" has been common, contributing to ever-escalating asking prices.

However, Epstein points out several trends affecting the market that savvy sellers should keep in mind before declining offers. In Manhattan, there's a sense that the residential market has "stalled out," with potential buyers having more options to choose now than several months ago. Manhattan trends usually ripple out east and are reflected later in the Hamptons market.

The drop in the NASDAQ is also affecting perceptions of individual wealth. And, with the presidential election looming, there seems to be a general sentiment of dissatisfaction with both political nominees. Many voice the concern that neither candidate will be capable of sustaining the country's economic prosperity. Epstein's current advice for the sellers? "Seize the day."