Prices Tumble in the Hamptons

Prices in the Hamptons have dropped steadily over the past few months; down more than 25 percent.

By: John Noble

According to a recently published report from appraisal firm Miller Samuel and brokerage Prudential Douglas Elliman, the average price for a home in the Hamptons decreased over the second quarter of 2008. Like many other areas of New York state prices are decreasing. It still cost’s a pretty penny for a home in the Hamptons but the new average of $1,730,414 is making many homebuyers looking for property happy.

This time last year the average price for a home in the Hamptons was 26.2% higher. It’s not surprising that housing prices are dropping in the Hamptons. Just look at housing prices in Manhattan. Just one year ago the average price was 21.8% higher than it is now for a home in Manhattan. Trends like these are taking place all over the country as the mortgage industry tries to bounce back from the sub-prime lending fiasco of 2007. Those who could get a home two years ago are having a harder time finding financing which is forcing realtors and sellers to reduce prices across the board.

There are lots of properties in the Hamptons that are either vacant or on the market. While the number of unsold homes has not changed much since the first quarter it has increased sharply over the last 12 months. Since the end of the 2007 second quarter the number of homes sold has decreased nearly 40%.