The first quarter of 2024 in the Hamptons was characterized by a significant drop in trade volume, down 50% compared to Q1 2023, from $501 million to $249 million. This marked a noticeable slowdown in a market typically known for its high demand and activity. Still, despite this decline, some segments demonstrated resilience and even growth, providing a nuanced view of the overall market.
Although the quarter saw a general slowdown, there were a few bright spots worth noting. New construction saw growth, with a 22% increase in volume compared to Q1 2023, from $44.3 million to $53.9 million. Southampton recorded a remarkable 110% increase in volume, from $53 million to $112 million, despite a steady number of 3 trades. This suggests higher overall prices and sustained demand, demonstrated best by the Bespoke-led combined sale of 376 and 377 Gin Lane for over $88.48M, or Mylestone at Meadow Lane, an 8-acre estate which closed last year for a last asking price of $135M. Amagansett and Montauk also stood out with a 65% increase in volume and a 100% increase in the number of trades, with 2 trades in Q1 2024 compared to 1 in 2023. Inland properties experienced a 25% increase in the number of trades, from 10 this past quarter compared to 8 the year before.
Most notable this quarter was the sale of Topping Farm property, a land property that entered into contract in Q1 and finalized in Q2 for $48 million. This sale involved a collaboration with the Community Preservation Fund (CPF) and the Peconic Land Trust, reflecting a broader commitment to preserving the beauty and character of the Hamptons. “The sale of Topping Farm, which promises no development of 27.3 acres indefinitely, is only going to increase value in both the short and long-term for Hamptons homeowners, particularly inland homeowners in the surrounding area,” says Joseph De Sane, Managing Director at Bespoke.
Zooming out and looking at buyer sentiment in general, interest rates had some impact on the market. “With sustained high rates, many potential buyers adopted a patient approach, waiting to secure the right property rather than rushing into a purchase,” says Michael Shultz, Director of Buyer Services at Bespoke. “This led to pent-up demand as buyers waited for new turnkey inventory to enter the market. However, as Q1 progressed, there were signs of change in sentiment, as there were 17 properties in contract as the quarter ended, totaling over $150 million.”
This sets up 2024’s second quarter to surpass the record highs of 2021’s second quarter, which reached $123 million in volume, and which was highly influenced by COVID-related demand. “Keep in mind”, explains John Hollyer, Senior Portfolio Manager at Bepsoke, “that the anticipated rise in Q2 of 2024 would be on top of the second quarter being historically strong one anyway, as buyers often time their purchases to be ready before the summer season.”
"Despite the slower start to the year, we believe the number of properties in contract at the end of the quarter is situating Q2 for incredible strength,” agrees Sam Kelly, Bespoke's Senior Portfolio Manager in the Hamptons. “I am eager to see its performance compared to previous quarterly records, which this quarter is on track to hit. As market sentiment improves, we're confident that the Hamptons will continue to attract buyers looking for unique and high-quality opportunities in a market with constantly low inventory."
Caroline Donald, Senior Portfolio Manager at Bespoke, continues, “Based on what we’ve seen in the rental market alone, with renters gearing up for summer around end of March and early April, we anticipate a busy summer season, with sidelined demand looking to acquire well-positioned inventory.”
