Any other suggestions?
the most talked about topic on the east end
**Thanks to Jonathan Miller for bringing this to the HREB’s attention.
“We were actually shocked they did this,” says Scott Simon, who as the head of the giant bond fund PIMCO’s mortgage-backed securities team is one of the world’s biggest mortgage bond traders. “It seemed so out of line with their mission.”
The trades “put them squarely against the homeowner,” he says.
Gregg Saunders, vice president of retail real estate development at Philips International, had been in no rush to sell a house north of Route 27 in Sagaponack that was built for him and his wife in 1998. The four-bedroom property with a tennis court and pool had been on the market for two years at $2.9 million.
Then last year, he bought a historic home on an acre of land closer to the beach in the same town for $2.45 million.
Saunders said he “didn’t want to be stuck with two homes,” so he cut the price on the first house “dramatically.” It sold in December for $1.75 million.
as told to Bloomberg News, Jan26, 2012
The reality is, the realty market in Manhattan has held significantly better than The Hamptons. We have typically said that “as goes New York, so goes the East End”, however it does not appear to be holding true this time around.
January 27, 2012, 8:14 AM EST, Bloomberg
Why would that be? Could it be:
1- Manhattan has more permanent residences and The Hamptons are more discretionary homes?
2- There are more foreign buyers in Manhattan than The Hamptons because the investment quality of Manhattan real estate is more stable?
3- The Bankers who have fueled both buying here as well as the business of others who end up buying here are being more conservative? ( have you heard the stories about the senior management at Goldman, Chase, etc telling their ranks to “keep a low profile”)
4- Is it that The Hamptons don’t have professional property management companies that can manage real estate investments adequately for investors?
5- When enough properties sell for 60% (or less) of asking price, does that spook big buyers to downsize and play it safe?
6- Could the lack of dependable Market Data make today’s more educated buyers uneasy?
“Oh,$25million was the highest sale last year? Too bad.” Well, while most of us would love to have those $25m, $24 and even the $16M sales, seeing them at the top of the carts, compared to the $100M Further Lane and $65M Gin Lane sales of 06-07 make us ponder if this low-carb life style is here to stay?
…to be continued.
“…home automation features are increasingly being built into smaller spec homes and new developments. Buyers like the convenience as well as the energy savings. Alfonso Giaquinto, the owner of Plum Builders, said he decided last year that “complete home automation systems” would be among the amenities that his spec homes offered. “The technology was available at a good price,” Mr. Giaquinto said, citing research showing that the 39- to 49-year-olds he was appealing to were “interested in having this technology in their home.””
“Compared to the third quarter of 2010, home sales in the Hamptons and North Fork jumped 14.7 percent, to 538 from 469, and the median price rose 12 percent, to $700,000 from $625,000″
East End market gains over last year
Third quarter marks second highest number of $5M-plus sales in four years
October 27, 2011 12:00AM
By Leigh Kamping-Carder, The Real Deal Magazine
Just for the record, I have an issue with flowery articles that put a positive spin on data reports that show slight gains after a catastrophic downturn. And to top it off, because there is no single source for home sales on the East End ( because the brokers are still refusing to employ an MLS system in order to keep out competition) every report has different data and is interpreted differently. The report below shows a decline in Q3 2011 vs Q3 2010…who’s right?
Yes, sales are increasing in some areas and in the higher price ranges, but there are still thousands of homeowners who are under water, stuck in their homes, unable to sell and don’t know where to turn or what to do.
Any improvement is good, but let’s be realistic about where we’ve been and where we are.
Here’s a table of 3rd Quarter sales on the East End from 2007 to 2011.
This is a market where every other resident has their real estate license (in hopes of fortune and fame) and many of people we know bought multiple properties in the “Roaring 00’s
when the number of sales are down nearly 40% from 2007 and the sales volume is down nearly one-half billion dollars, that’s not great news.
|East End 3Q 2011||454||573,840,437||607,250|
|East End 3Q 2010||549||627,850,081||602,999|
|East End 3Q 2009||535||652,774,790||590,000|
|East End 3Q 2008||517||601,573,787||575,000|
|East End 3Q 2007||725||1,051,874,697||732,000|
It comes down to business levels and greed. Flat out, the owners would rather have their shops empty than rent them for a price year round tenants are willing to pay.
There is a moral component to that, and not being a landlord, perhaps I can’t appreciate that situation. But being a resident and a Realtor, I can appreciate that fact that it is depressing to see empty stores on our Main Street.
Here’s an article from the NYTimes, which only skims the surface:
Charles DiSapio, the owner of Country Gear, a home furnishings store in Bridgehampton, said if he had not bought the building where he opened the business in 1982, he would not have been able to keep up with rising rents.
“I couldn’t afford to be here,” he said. “I’ve seen a lot of stores go out of business because they didn’t own their building.”
By MARYANN HAGGERTY
Published: April 28, 2011
IT might be easier if you just paid cash for that vacation house.
There is loan money available for second-home purchases, but expect bigger down payments, higher interest rates and other standards tighter than on a principal residence — and those standards are tight already. In addition, there are quirks specific to vacation markets.
Vacation-home purchases accounted for 10 percent of home sales last year, according to a National Association of Realtors survey released this spring. Investment purchases accounted for 17 percent — but sometimes the line between the two is a bit blurry. That’s down sharply from the height of the real estate boom in 2005, when vacation and investment sales accounted for 40 percent combined.
Rest of article here
Just spoke to Mortgage Banker, Gregory Frank from Blackstone Mortgage Corp. on LI.
He says the Jumbo market is freeing up nicely with Stated Income Loans up to $3Mil in the 4% range.
“Jumbo money is awesome right now”, say Frank.
It’s available for primary or secondary homes, not investment homes.
You have to put more money down than in the past, like 30-50% today, but where there was nothing, there is now “plenty”.
Here’s an article from the WSJ:
Jumbo-Mortgage Market Thaws WSJ.com
One of the things that keeps values down in Springs is the high taxes and now they are getting thumped again…they just can’t win.
Shouldn’t the Board of Ed try to figure out how to level the taxes between the districts that share the same resources?
A Surprise Tax Increase For Springs
District influx of 37 high school students
By Kate Maier, The East Hampton Star
(October 21, 2010) The 2010-11 Springs School District tax increase has jumped from 5.1 to 9.5 percent as a result of an unanticipated influx of 37 high school students, which amounts to an additional tuition payment of more than $800,000 to the East Hampton School District.
The Springs School District’s attorneys have advised that the tax levy increase is not subject to a public vote because it is tuition related, said Christopher Kelley, the Springs School Board president, at a meeting on Monday night. rest of story here