Hamptons residential market slowed during third quarter

Real Estate Weekly, Oct 24, 2001

Curtailed by both a slowing economy and repercussions from the Sept. 11 terrorist attacks, the Hamptons residential real estate market slowed significantly during the Third Quarter, with sales activity off by 22.8 % and sales volume down by nearly 30%.

According to the just released Third Quarter 2001 Report issued by Cook Pony Farm, one of the Hamptons top real estate brokerage firms, the average purchase price of a Hamptons home dropped by 9.1% (from $680,974 to $618,758) during the months of July, August and September compared to figures from the same period last year while the number of sales fell from 636 to 491 and total sales volume dropped from $433.1 million to $303.8 million.

"Obviously, there's been a definite slow down in the overall volume of business from last year," noted Cook Pony Farm vice president Judi Desiderio, but she pointed out the "the number of sales and total sales volume are somewhat in keeping with the years prior to the boom of 1999 and 2000. The 9.1% decline in overall average sales prices is largely due to the sharp decrease in multi-million dollar sales, which pulls down the average. In general, sales prices seem to be holding as of September 2000, although there's been a little to no appreciation."

In other positive trends since Sept. 11, Desiderio noted that many summer residents were extending their time out east and all ten Cook Pony Farm offices report dramatic increases in the demand for winter and year-round rentals.