Hamptons home market gains momentum

Real Estate Weekly, Feb 5, 2003

The Hamptons home sales market continued to gain momentum in the final months of 2002, with the number of purchases climbing by 37.8% and total sales volume increasing by 39.1% from a year ago.

According to the just released Fourth Quarter 2002 Report issued by Cook Pony Farm, one of the Hampton's top real estate brokerage firms, the average purchase price of a home in the exclusive East End region of Long Island rose only fractionally during this period to $875,506 compared to $867,620 last year, but the number of sales transactions increased from 423 to 583 while year-to-year sales volume figures rose from $367 million to $510.4 million.

"This was a healthy year for the Hamptons real estate market, particularly on the East End, and it finished in a very strong fashion," stated Cook Pony Farm vice president Judi Desiderio, who pointed to "interest rates at 30-year lows" as an important factor that helped drive home sales in 2002.

There were a number of bright spots during the fourth quarter, noted Desiderio, who pointed to a 122.9% rise in sales in the $1 million to $1.99 million category (78 transactions compared to 35 last year) and a 76.9% rise in $2 million to $2.99 million purchases (23 compared to 13).

In addition, the Westhampton marketplace continued its resurgence with across-the-board increases -- a 38.6% rise in the number of sales, a 97% climb in total sales volume and a 42.1% average sales price increase -- from $607,496 to $863,238.

"With the volatility of the stock market continuing and bank products offering little more than marginal returns, the purchase of Hamptons real estate remained one of the best options for many consumers and investors during the past year," Desiderio added.

Published quarterly, the Cook Pony Farm Report monitors and analyzes home sales activity and price trends in Amagansett, Bridgehampton, the East Hampton area, East Hampton Village, Montauk, Sag Harbor area, Sag Harbor Village, Shelter Island, Southampton area, Southampton village and Westhampton.

Among other interesting finding revealed in the Cook Pony Farm Fourth Quarter Report include the following:

* Sales activity was on the upswing in 10 of the 11 surveyed markets, with Bridgehampton (a 129.2% increase), East Hampton Area (up 56%) and Westhampton (up 38.6%) leading the way.

* Southampton Village, which includes North Sea, had the highest average sales price ($1.73 million) during the quarter, followed by East Hampton Village ($1.71 million), Bridgehampton ($1.13 million) and Amagansett ($1.09 million). The biggest increase in average sales price occurred in Southampton Village, which jumped from $957,333 to $1.73 million, a rise of 80.7%

* East Hampton Village had the most sales (four) of $3 million and up, followed by Bridgehampton, Southampton Area and Southampton Village, with three each.

* The East Hampton Area and Westhampton were the busiest fourth-quarter markets, recording 142 and 140 trades respectively.

* In all, there were 115 million dollar and up sales during the quarter compared to just 66 last year.