rickjones posted on September 01, 2009 01:03
As recently reported in the Wall St. Journal, there are a few signs of turnaround in the Hamptons, as string of beach communities housing some of New York’s wealthiest. On LBI, often referred to as the “Hamptons of New Jersey”, the sales report for the month of September 2009 was one of the strongest in recent memory.
Some of the statistics from the Hamptons show the number of new deals put into contract jumping to 156 in August from 62 in July. Home sales rose 34% to 344 units in the second quarter from the prior quarter.
“Hamptons developer Joe Farrell, who built his last spec home for more than $7million two years ago, is ramping up again. Earlier in the spring, he says it was no problem getting 10% to 15% discounts on “blue-chip” lots south of Montauk Highway and within walking distance to the beach. Now, “some stuff is going into bidding wars,” says Mr. Farrell, who recently lost out on a one-acre lot for $3.15million.”
Why the sales jump? Many Wall Street brokers, who make up a large portion of the buyers in the Hamptons, feel that bonuses are going to be good this year. When confidence returns to this group, sales go up in luxury housing found in the Hamptons and Long Beach Island.
Similar to Long Beach Island, the ultra hi-end of the market is where sales are most rare, but the recent sales trends are most encouraging. See page four of this newsletter to get full details on the month of September for LBI.