Northfork Properties

The New York Times Weighs in on the Hamptons Real Estate Market

Posted on Saturday March 23, 2013 7:45 PM
by Joseph Kazickas 1 Comment »

It has been a while since our last post here on the Marketwire but to be honest there is only so much time in the day and with the hope that this blog stays interesting to our followers we’d rather say nothing than fill it with nothing.

First a quick rental review. As expected the rental market this year continues to outperform last year’s. In a nutshell the days of pricing erosion are over following the overall reset in asset prices that started in 2008. And while prices are no longer going down, neither are they going up. There is, however, elasticity at the higher end of the market where we see some discounting from ask. The mid market (between $30,000 and $60,000 for the traditional MD-LD season) has seen good demand, good absorption, and steady pricing.

Rented by Rosehip Partners to delightful clients. South of the Highway in Bridgehampton.

The New York Times published it’s market overview this weekend and here is the link. Of course all the sex appeal is in the high end, but candidly most of  the action is elsewhere. Especially so on the re-sale side where appropriately priced properties that come to market under $1,000,000 seem to be finding a steady supply of buyers.

So as not to risk becoming longwinded here are two recent news items about things that you can’t make up…

The seller who refuses to leave her house, read a brief news report here.

And, we like this one, but pity the agent who did the deal. How was he to know? A problem that sometimes arises. Please read our July 16, 2012 post.

Hamptons Rentals – One Month In…

Posted on Friday February 8, 2013 7:40 PM
by Joseph Kazickas Comments Off

Vintage Montauk

The 2013 Hamptons rental season is starting to pick up, but if you are hoping to find something to rent in Montauk this season it’s already starting to wind down. There has been an unprecedented level of interest in Montauk thus far this year and most properties priced within the $25-35,000 price point have been rented by a largely younger audience. There were times in January where agents, not only from Montauk, but from points west, crossed paths with each other multiple times, customers in tow. In short order inventory was consumed.
Anecdotal evidence suggests that this will be another active rental season.

The 2013 Hamptons Rental Market – A Preview

Posted on Saturday December 29, 2012 8:24 PM
by Joseph Kazickas Comments Off

2012 is fast drawing to a close and with it a year of substantial improvement in the Hamptons real estate market.
Here is an interesting metric that might provide some indication as to how the 2013 summer rental season could develop…web traffic to over the last 30 days, compared to the same period last year, is up a very significant 38.5%. Page views are also up by nearly ten percent.
The increase in web traffic has translated into a greater lead flow compared to last year, with more closed deals as a result.
Traditionally President’s Weekend in February marked the start of the Hamptons rental season. No more. The internet has changed that.
While we can’t give you a reason for the increased traffic it’s possible that people who have historically rented in areas that have been touched by Hurricane Sandy are looking to the Hamptons as an alternative destination in 2013.

54 Highway Behind the Pond – Just Half the Story

Posted on Thursday November 29, 2012 6:51 PM
by Joseph Kazickas Comments Off

Our earlier post about the Highway Behind the Pond outlier, is only half of the story. We learned that under a separate purchase the buyer also closed on 58 Highway Behind the Pond, owned by the same seller of the aforementioned 54. The package of the two properties was sold for over $40 million. This makes Highway Behind the Pond, East Hampton perhaps the most valuable address in America with its unique combination of ocean front estates (10 of them) golf course, pond views and pond frontage.

54 Highway Behind the Pond, East Hampton – A Real Estate Outlier

Posted on Tuesday November 27, 2012 9:42 PM
by Joseph Kazickas Comments Off

If anyone had any concerns about the health of the high end real estate market in the Hamptons, well the recent transfer of 54 Highway Behind the Pond in East Hampton Village should allay concerns.

Sited on 1.4 acres, and overlooking the 15th fairway of the Maidstone Golf course, this architecturally unimpressive house recently sold for an astounding $20 million, and definitely ups the value of the neighborhood. In 1999 this property sold for $3,100,000, and other than some personalized landscaping not much else has changed.

Hamptons Real Estate Market – Gone With the Wind

Posted on Friday November 2, 2012 9:23 PM
by Joseph Kazickas Comments Off

It has been 4 days since Sandy barreled through the northeast United States, and for now at least, a low cloud seems to be hanging over the real estate market. Agents are reporting that at least temporarily they hope, the phones have stopped ringing, that interest has shriveled; in short, the market may be officially closed for the season.

Sandy has dumped wet sand on the Hamptons real estate market, but that can hardly be surprising, what with no electric, no cable, no internet, no cell, no phone, no water, no heat and now gasoline shortages the latest pesky annoyance. We are thankful our area got away so light compared to our friends on the Jersey Shore. Theirs is the disaster.

Near Town Line Road in Sagaponack - The bad news is another storm is expected next week.

The tremendous damage to the northeast’s coastal areas has people wondering (once again) as to the wisdom of living on, or so near to, the ocean, sound or bay. In the old days people knew better than to live too close to the sea. Communities were settled a safe distance away.
With time the question of safety gave way to the value and desirability of an esthetic. And not without good reason. Given the unimaginable wealth created over the generations, and as our population grew, it’s no wonder that owning a beautiful stretch of beach with an incomparable view, would become desireable, not to mention pretty effective at setting one apart. But it can come at a cost.

Fresh Pond beach on the bay side, in Amagansett, before the storm hit.

Man is helpless in the face of nature.
Coastal erosion is a terrible thing to watch. In the end it is real money, washing away in front of your eyes, which, in our material age, might be pretty painful to some.

The same bay, the next day. All serene, but a lot of real estate has disappeared.

Stratus Goes MacOS/Safari Compatible

Posted on Tuesday October 2, 2012 7:45 PM
by Joseph Kazickas Comments Off

It doesn’t mean anything to those working in the PC environment but one of the big hassles about the Long Island Board of Realtor’s Stratus MLS platform was its incompatibility with the Apple Mac OS.
Our office is a an Apple bastion, and having to find a PC in order to enter listings into MLSLI was, well, nothing but a hassle.
For those who’ve endured the hardship, our days in the desert are over. Stratus is now Mac compatible and it seems to work like a charm.

Sellers can take advantage of a great opportunity

Posted on Saturday September 15, 2012 2:17 PM
by James Young Comments Off
Stay off the Shoal

Chart Your Course Carefully

Because of all the noise out there what with the presidential race, and the 24 hour news cycle some of you sellers may need reminding of the impending major adjustment upward of your capital gains liability if you wait until next year to sell your home or commercial property. Capital tax rates are moving up from 15% to 25% with the expiration of the Bush era tax cuts. You will pay a whopping 66% more $$ to Uncle Sam in 2013.

But Don’t take my word for it.

If you’re an agent, here’s your chance to get your seller off the fence. Become a consultant. Calculate his tax liability under 2012 vs. 2013 rules and let him know how much more of his hard earned profits he will keep by getting it done in 2012.

Changing Trends in the Hamptons Rentals Market

Posted on Friday August 17, 2012 8:28 PM
by Joseph Kazickas Comments Off

One of this seasons stand out rental homes, close to the Ocean in Amagansett

Historically, back in the age of single wage earner families, the rental season meant Memorial Day to Labor Day, the “full season” rental. But things have definitely changed over the years.

First the season contracted to July through Labor Day. In the last ten years it seemed that the norm had become renting for a month, either July or August. In terms of enquiries the most popular rental period now may be weekly.
These changes may be a reflection of our less affluent times, or just plain lack of time to enjoy a full season of leisure.
As the market demand shifted the question of how to price rentals became more important and a neat rule of thumb developed. A full season rental priced at $100,000 would be parsed into two halves with August alone asking $50,000 and June and July the other $50,000. And then to split the hair again June would be priced at a sixth of the season value (or $17,000) with July claiming a third, or roughly $35,000. All nice and logical.
Except for when the market shifts again.

July? Or August, by the pool? And how should it be priced?

I am referring to a market shift which places a July rental in higher demand than an August rental. Pricing should adjust accordingly.
The reason this is a topic worth commenting on is that in the Hamptons, at least, we may be seeing a shift to July as our most desired month. More than one customer has made the comment to us that the weather is better, the traffic lighter, the crowds are thinner in July and that August in the Hamptons is a nightmare (with the added risk of hurricanes thrown in.)
If all this is, in fact, the case then we will eventually see a re-pricing of July rentals, closer to those of August.
This is something we’ll be discussing with Landlords prior to next season.

This Summer’s Hot Hamptons Rental Story

Posted on Monday July 16, 2012 8:09 PM
by Joseph Kazickas Comments Off

Lest we seem remiss, we are in fact very much aware of this summer’s hot Hamptons rental story, involving a crafty young promoter who figured to make a killing hosting prom parties in houses that he rented, ostensibly for “large family reunions”, from unsuspecting homeowners. Well, it seemed good on paper. Until he got caught and the story went viral. Here are just a few links that offer details:
In the New York Post……/party_over_in_li_prom_con_jobs_BQCC…
In Newsday…
From the Real Deal…
Even the UK’s Daily Mail picked it up.  The original story was broken in the East Hampton Star.