I’m doing reserach for the Hamptons spread…where properties are selling now vs the peak in the end of ’06/early ’07. Challenge is, since there is no market-wide listing system that tracks sales (the brokers in the Hamptons still have refused to embrace an MLS which is used universally across the US) most information is anecdotal and at least 3 months behind actual transactions. Since the latest financial crisis took place in late September ’08 (just over 3 months ago) transactions happening since that time are just starting to be reported now, so there is little imperical evidence of the Hamptons market impact.
Even the year end 2008 results, while showing a drop in transactions, median price and total dollar volume for 2008 vs 2007, doesn’t show the true impact of the latest episode.
What I can report at this time is that there is a gap of between 10-15% between what buyers are willing to pay and what sellers are willing to accept at this point. Many sellers are still in denial about what their homes are worth and the buyers I’m working with are not willing to budge. md
Check out what Noah Rosenblatt is seeing in Manhattan below:
There will be plenty more of these same unit deals selling for between 15%-25% less as time goes on, but most of the comparisons defining this downturn will be of different units in the same building. I don’t have time to go researching for how many others there are out there like this, so I’ll leave it for you guys to post in the comment section.
see complete post here