WHAT DOES $3,000,000 BUY YOU...HERE IN THE HAMPTONS? - The examples of sold properties contained in this Transfer Report help to answer the $3,000,000 question! Right now, especially, this popular price point is a moving target...and yet is, for the most part, based on a number of traditional factors, plus one. Of course, it's all about location, location, location; the size of the parcel; South of the Highway or North; age and amenities of the structure(s); curb appeal, etc. The illusive 'plus one' is timing...what time of the year the transaction actually took place! The correlation between supply and demand, at any given time, can inevitably affect the selling price of a property. Three-million dollars buys you more bang-for-your-buck when the supply is in excess of the demand...and, conversely, less 'bang' when the demand is equal to or greater than the inventory. Another consideration is that as the inventory of homes in the $3,000,000 category continues to swell, as it has so significantly over the past 18 months, we may witness the prices triming slightly to meet and/or beat any competition. Though the overall price of real estate here in the Hamptons continues to soar...outperforming other investments...some with crystal-balls have said that projections for this year are estimated at (only!) single-digit increases, rather than the double-digit increases experienced throughout 2004 and 2005. In my opinion, a more studied approach for the serious buyer is to keep an eye on the ratios of supply to demand...in a specific price point, in a particular area, et al. Purchasing the greatest degree of equity (for your dollars) can be as simple as sticking to the basic three "W"s...what, where, and when!
8-FIGURE SALES OCCURRING IN A RECORD YEAR...2005! - The all-stars of pricey properties (here in the Hamptons) are, for the most part, concentrated in South of the Highway locations...running from Southampton to East Hampton. This Transfer Report references a number of these properties...each with a price tag in excess of $10,000,000...and all were sold and closed in 2005...a notable year for mega-sales! The numbers may appear to be telephone-number-esque (to some of us), but the very real, established value and the inherent equity in the majority of these addresses, goes far beyond a visceral buy (on the part of the purchaser.) All, needless to say, are one-of-a-kind real estate acquisitions. Some are oceanfront or waterfront properties. A couple of them include very large parcels of land. The one common denominator that each and every one of these big-ticket investments share is that each has successfully met (and/or exceeded) the basic Laws of Supply & Demand. The bottom line is that many of these expensive properties were extraordinarily good buys...with unique features and irreplaceable qualities that value them in excess of their purchase price.
VACANT LAND...the prices of raw land, here and now, are the best bellwether we have for projecting what our housing costs will be in the future! - The price of vacant, buidable, land here in the Hamptons continues to rise...forcing the price of new construction to follow suit. No longer are brand new homes modest and small. With the cost for a parcel of land at an all time high, builders and developers are adding extra square footage and lots of bells & whistles to the overall package...and enhancing their initial investment. This trend will continue, as the popularity of new construction in the Hamptons grows greater and greater. Should you be shopping for the acquisition of raw land, the following Transfer Report will give you an idea of what your dollar will purchase in this neck of the woods.
SOLD & CLOSED FAVORITES...TOWN-TO-TOWN - In today's market, buying a home in the Hamptons has a newly established, and far more pricey, entry level. Yet there are still many good values out there and available...properties with a greater equity share than their asking price. The biggest factor in terms of Market Trends is that the average purchase price for a Hamptons property is higher than its ever been...and especially for the most sought after addresses. Here are a couple examples of sold and closed transactions throughout seven different towns in our community of the Hamptons.