New Yorkers with 'middle class' $5M homes in the Hamptons slash selling prices ... trends now
The Hamptons 'middle class,' comprised of New Yorkers with somewhat modest million-dollar second homes out East, have been dropping their asking prices by nearly 30 percent in a bid to sell their homes.
Because of growing interest rates and the post-pandemic need to be in the city more often, many middling Hamptons staycationers, who own properties up to $5million, are attempting to sell their homes at reduced prices.
In some cases, owners have cut their asking prices by hundreds of thousands of dollars in Sag Harbor and Amagansett.
One agent told the NYPost that prices for homes on the lower end of the spectrum are dropping. They said: 'We're not talking about the ultra-wealthy here – these people are subject to economic norms.
This property in Sag Harbor, which is currently on the market for $2,395,000, has had its price knocked by a total of 28 percent since March 2023
'When it comes to having a vacation home, it's just not as easy to justify the cost.'
The sudden bounce is believed to be linked to the highs seen during the pandemic, when buyers were paying double for homes out East, have now settled.
Without widespread work from home rules, and people forced back into the office in the city, many with their second homes are struggling to justify keeping them.
The source said: 'I know a lot of people turning their remote offices in the Hamptons back into bedrooms and putting them on the market.'
One property in Sag Harbor, which is currently on the market for $2,395,000, has had its price knocked by a total of 28 percent since March 2023, according to Zillow.
Before then, the six-bed, six-bath Hamptons home with its own private pool was listed for $2,750,000.
The home, located in picturesque Sag Harbor, is described as 'a unique investment opportunity' for a buyer who wants to give it 'some tender loving care.'
There is a spacious 3,285 square foot main house with five bedrooms and three and a half baths, as well as a private-entranced one-bedroom, one-bath apartment suite for visiting guests.
The listing on Zillow states: 'On warm summer days, take a dip in the inviting gunite pool, shoot some hoops, or go enjoy the deeded beach with mooring rights that is the gateway to Long Beach and its breathtaking sunsets on Peconic Bay.
'This is a golden opportunity. With a proven track record of generating income from both long and short-term rentals, this compound presents incredible potential.'
Still despite the sizeable cut, the home is still sitting on the market.
Similarly, in luxurious Amagansett, NY, a three-bed home's asking price was cut by 23 percent in the last month alone.
On October 1, the stunning property was listed at $1,795,000 - but this was cut to $1,395,000 by October 24.
This property in Sag Harbor is currently listed for $2,800,000, which is a 12.5 percent drop on the asking price since the summer
On August 18, this house was listed for $5,700,000, but that was dropped to $4,995,000 a month later in September - making it a 12.4 percent decrease
The beach cottage boasts water views of Napeague Bay in Amagansett's hidden gem, Lazy Point.
Buyers can enjoy 'majestic sunsets and spectacular sunrises with views stretching to the Connecticut shores from this charming home that exudes peace and tranquility from a bygone era.'