The Covert Report - Waning Summer

So where are we and where does the market go?  This is always the question when discussing Hamptons Real Estate, and if I only had a crystal ball….  But, I’m a firm believer in the long-term strength of the Hamptons market, and I do not see any immediate indicators to cause concern in our little bubble of a world.  And it’s worth pointing out that not all bubbles pop.  Are there global economic and geopolitical concerns?  Absolutely; however, Hamptons luxury real estate is often an island unto its own, and current market factors only widen the gap from here to the outside. 

There have always been two primary types of Buyers in this market.  One is the Opportunist.  The Opportunist looks for a deal from a negative angle, and will tell you that this market is sure to come down, will correct X%, may crash, doom is on the horizon, there will be blood in the water, and distressed assets will be everywhere soon.  They take a wait and see attitude.  Then there are the people that have a more positive outlook.  Let's call this type of Buyer the Visionary.  They have a longer and broader outlook.  The Visionary sees past perceptions of short-term obstacles and is in the market for the long hold.  

Up until 2019, the market allowed for both types of Buyer because we were in a fluid, transaction-driven environment.  Inventory came, some sold, some stalled. As in any market, there were always personal distress situations - the three D’s of Real Estate - Debt, Death, and Divorce - that allowed the Opportunist chances. But this market is different.  Way different.  

We have been talking for months about lack of inventory, and it appears that this is not changing any time soon.  For every home that hits the market, there are simply more Buyers - and this is where the Opportunist misses the point.  Too many people faced a major reckoning over the last 26 months to not look long-term.  What is the point of sitting on the sideline WAITING for something that may never come.  There is a Carpe Diem attitude with many of our current Buyers; let’s get on with it and enjoy life they say.  And they continue to buy, continue to keep inventory tight, and continue on with enjoying their home.  This seems to be the prevailing climate at least in our small subset of the bigger world. 

Oh, and as a side note, we have erased nearly half of the Wall Street loses from the first six months of 2022, so there is still a LOT of wealth out there in our Client base.

The Hamptons will always be The Hamptons and to paraphrase either Mark Twain or Will Rogers, depending on who you read, they ain't making any more of it. 

If you want to know more about what’s going on in The Hamptons, especially as how it relates to your situation, just ask us.  We spend every day with this stuff, and we’re happy to share our knowledge, experience, and expertise.