Hamptons Real Estate Market Overview
The median sales price for homes in the Hamptons reached a record $2.34 million in the fourth quarter, marking a 34% increase from the previous year. The average sale price climbed to $3.76 million.
According to a report from Douglas Elliman and Miller Samuel, the number of homes sold for over $5 million also hit a record high, totaling 82 properties.
The Hamptons real estate market saw its median sales price hit a record $2.34 million in Q4, a 34% increase year-over-year.
Driving Factors
This surge in prices is primarily attributed to Wall Street bonuses and increased tech wealth, which are attracting a new wave of buyers to the New York beach communities. Jonathan Miller, CEO of Miller Samuel, noted a significant increase in wealth in the Hamptons over the past few years, directly reflecting a strong year for Wall Street.
Projected bonuses for 2025 were expected to be the highest on record, showing the strongest growth since 2021, according to the New York State Comptroller. Real estate brokers indicate that hedge funders, private equity chiefs, and venture capital investors are contributing to the buying activity, alongside traditional Wall Street bankers.
Market Dynamics
Most of the gains in median prices stem from a shift in the sales mix, with a greater proportion of transactions involving larger, more expensive homes. Sales in the lower and middle segments of the market continue to be impacted by high interest rates.
In contrast, the high-end market is experiencing a boom, characterized by all-cash deals from buyers with substantial liquidity following several years of stock market gains. Miller clarified that this trend represents a shift towards higher-priced home sales rather than general price appreciation across all existing homes.
Current Market Activity
Inventory remains low, particularly for premium oceanfront properties. Brokers report an early and strong start to the summer rental and sales season.
For instance, a nine-bedroom, 11,000-square-foot oceanfront home in Bridgehampton is available for rent at $700,000 for any two weeks this summer. Gary DePersia of Corcoran in East Hampton stated that many high-end properties for the summer have already been rented, including a waterfront home for nearly $1 million from July to Labor Day. He noted an increase in buyers and renters from Florida and California, with clients seeking the Hamptons as a summer escape or a meeting ground for friends and colleagues.