Long Island Market Fast Paced with Record Low Inventory; Sales Rise in Hamptons as Sellers Acclimate with Pricing

Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases fourth quarter 2019 Long Island, Hamptons and North Fork Sales Market Reports.The reports showed a fast paced market on Long Island, and the number of sales increased across all three regions.

On Long Island, listing inventory fell to a record low, after rising annually for three straight quarters. Sales and prices continued to rise.

“There are no surprises in our latest report. Even the fall in inventory comes as no real surprise. Although inventory is tight, buyer activity is steady and they are ready to buy,” said Ann Conroy, Chief Executive Officer of Douglas Elliman’s Long Island Division. “Sellers, when reasonable, are getting their price. Prices are holding firm but rising slowly which is healthy in any market, so buyers are confident and are taking advantage of the low interest rates. But let’s not forget that in a political season, there always is a certain amount of uncertainty which can slow things down a bit. In our current political climate, both nationally and internationally, caution is expected.”

In the Hamptons, the report showed that price trends are still sliding, though sales rose annually for the first time in eight quarters. It was however the second-lowest number of fourth quarter sales in eleven years.

“After four straight quarters of surging inventory in the Hamptons, the gains slowed this past quarter,” said Todd Bourgard, Douglas Elliman’s Senior Executive Regional Manager of Sales for the Hamptons. “This suggests that more sellers are acclimating to the slower marketwith their pricing, resulting in an uptick in annual sales.”

On the North Fork, listing inventory stabilized after four straight quarters of gains. Despite a surge in sales, fourth quarter transactions were shown to be the second-lowest in seven years.

“Overall, we are seeing positive growth across the Long Island, Hamptons and North Fork markets,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and author of the reports. “The elevated levels in both sales and pricing can be attributed to the drop in mortgage rates that helped push the market forward.”

LONG ISLAND HIGHLIGHTS

Trends

“Listing inventory fell to a record low as sales and prices continued to rise.”

- The median sales price has not seen a year over year decline in twenty-seven quarters

- After rising annually for three straight quarters, listing inventory fell to a record low

- Number of sales were up year over year for the fourth time in five quarters

- Condo median sales price has not seen a year over year decline in twenty-one quarters

- After rising annually for three straight quarters, condo listing inventory fell to a record low

- Single-family median sales price rose year over year for twenty consecutive quarters

- Single-family listing inventory fell year over year for the first time in four quarters

- Luxury median sales price rose year over year for the third time in four quarters

- Luxury listing inventory increased year over year for eight straight quarters

Key Trend Metrics (compared to same year ago period)

- Median sales price 5.6% to $455,000

- Average sales price increased 3.8% to $522,413

- Number of sales rose 2.1% 7,611
- Days on market was 72, up from 70
- Listing discount was 3.4%, up from 3.2%

- Listing inventory fell 6.6% to 8,944

HAMPTONS HIGHLIGHTS

Trends

“Rapid listing inventory gains over the past year took a breather this quarter.”

- Median sales price fell year over year for the third time in four quarters

- The second-lowest number of fourth-quarter sales in eleven years

- The number of sales increased annually for the first time in eight quarters

- Listing inventory fell year over year for the first time in five quarters

- Condo listing inventory and sales rose year over year for the third straight quarter

- Single-family sales rose year over year for the first time in eight quarters

- Luxury listing inventory rose year over year to the highest fourth quarter tracked in eight years

- Luxury median sales price fell sharply year over year for the second straight quarter

Key Trend Metrics (compared to same year ago period)

- Median sales price fell 8.9% to $906,250

- Average sales price slipped 4.9% to $1,908,303

- Number of sales rose 11.1% to 400
- Days on market was 147, up 36.1%
- Listing discount was 12.9%, up from 7.5%

- Listing inventory declined 12.7% to 1,919

NORTH FORK HIGHLIGHTS

Trends

“Price trend indicators and sales rose year over year.”

- Median sales price rose year over year for the second time in three quarters

- Despite the surge in sales, four-quarter transactions were the second lowest in seven years

- Listing inventory stabilized year over year after four straight quarters of gains

- Marketing time and negotiability expanded from year-ago levels

- Condo listing inventory declined year over year for the third straight quarter

- Single-family sales rose year over year for the second time in three quarters

- Luxury sales over $2 million surged from the nominal sales last year

- Luxury listing inventory fell to its lowest level in three years

Key Tend Metrics (compared to same year ago period)

- Median sales price rose 3.2% to $650,000

- Average sales price fell 12.1% to $806,643

- Number of sales surged 48.5% to 153
- Days on market was 112, down 16.7%

- Listing discount was 9.5%, up from 6.2%

- Listing inventory was unchanged at 350

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.