Now that we've crossed over into June, I thought I'd illustrate the price trend relationship between the Hamptons and Manhattan. The former seeing a majority of single family sales and many second home purchases. The latter with a housing market of 98% apartments and single family family sales are a rounding error.
Despite the differences in their housing stock, their behavior in terms of price trends has been similar over the past decade. Median sales price for both markets have generally been in sync although the Hamptons fell a little sooner and harder at the beginning of the financial crisis. Hamptons price trends are more volatile because it is a much smaller market with only about 20% of the sales that Manhattan has.
The consistency between the markets is probably related to Wall Street and perhaps foreign buyers in good times and bad. If you're curious, Wall Street bonuses were up 2% this year.
Here are a few other observations.
· In the first quarter, 52.7% of Manhattan's sales were less than $1 million while the Hamptons had 44% below the threshold.
· Marketing times are a lot slower out east, averaging 191 days versus 100 days in the city during the first quarter.
· Sales in the Hamptons rose 2.5% year-over-year while Manhattan sales fell 19.5% over the same period.
· Median sales prices were fairly similar across overall: the Hamptons were $920,500 and Manhattan was $970,000.
· The Hamptons clearly has better sand than Manhattan.
· Matrix [MillerSamuel]