Long Island is witnessing a major real estate boom with six communities seeing median house prices surge by as much as 82 percent in the last year and buyers typically bidding around $40,000 over asking price.
Luxury Hamptons getaways that once sat on the market for months are being snapped up as soon as the for-sale sign touches down on the pristine lawns, with hopeful buyers facing competition from around a dozen other bidders per property.
Demand for properties far outstrips supply, sending the median Long Island house price up by 15.4 percent in the last quarter of 2020 compared to the last quarter of 2019, to a record high of $525,000, according to a report from Douglas Elliman and Miller Samuel.
Popular areas of Locust Valley, Lindenhurst, Westbury, Freeport, Stony Brook and Medford witnessed a surge by at least 15 percent with prices in Locust Valley almost double what they were last year.
At the height of the pandemic, an estimated 420,000 of New York City’s top 1 to 2 percent – who are responsible for half the state’s income taxes – fled. Many rented or bought new properties in lower-tax states, such as Florida and Texas.
But research last month shows that many stayed within the Empire State, moving into neighboring suburban counties that lie within a radius of just 100 miles. At least 14% of former Manhattan residents decamped for Suffolk County.
Real estate agent Christina F. Tabacco-Weber told DailyMail.com that prices as a result have increased across the whole of Long Island in the last year while there are around 50 percent fewer homes on the market.
Her agency, Lucky to Live Here Realty recently sold one property in the area for a staggering 38 percent over its asking price, bagging the seller an extra $186,000 after just 15 days on the market.
As a result, it’s become a common occurrence to see a stream of people line up around the block for open houses, with a typical event bringing in around 40 potential buyers compared to pre-pandemic numbers of just four or five.
Long Island is witnessing a major real estate boom with six communities seeing median house prices surge by as much as 82 percent in the last year. The six communities and their median house prices and increases in Q4 2020 compared to Q4 2019
Overall, more than $8.1 billion worth of homes have been sold in the Hamptons since the start of the pandemic – more than double the sales in the previous year – as New Yorkers swap the city for the suburbs.
When the pandemic started ravaging the nation last spring and sent white collar workers out of offices to home working, the Big Apple waved goodbye to many of its richest residents amid a mass exodus out of Manhattan.
But recent research shows 14 percent of those who upped sticks headed to nearby Suffolk County, in eastern Long Island, as they chose to keep one foot in the Empire State – but with the added benefit of more space for remote work, school work and outdoor space.
Ann Conroy, CEO of Douglas Elliman’s Long Island division, told Newsday the exodus of New Yorkers is one of several factors driving up house prices, including low interest rates and more buyers looking than there are homes available.
‘If something comes on [the market] it’s gone immediately,’ she said. ‘There are more buyers than there are sellers at this point, and interest rates are extraordinarily low.’
The Locust Valley area has witnessed one of the most dramatic surges in house prices, with the median home price skyrocketing by 82 percent from $569,000 in the last three months of 2019 to $1,037,500 in the same period in 2020, according to Miller Samuel and Douglas Elliman.
One three-bed, one-bath 1,600 square foot property sold for $186,000 over its $489,000 asking price.
The 1960s single family home at Katherine St was sold by Lucky to Live Here Realty for $675,000 in late March.
Experts told Newsday that price increases of about $100,000 have been typical for homes under the $1 million price tag as prospective buyers are attracted to Locust Bay’s beaches and country clubs, good schools and its location close to the highways.
LOCUST VALLEY, LONG ISLAND: Long Island real estate Lucky to Live Here Realty recently sold this property in Locust Valley for a staggering 38 percent over its $489,000 asking price, bagging the seller an extra $186,000 after just 15 days on the market
At the most extravagant end of the scale sits Lands End Manor, a 32-acre mansion where F. Scott Fitzgerald was once a guest and is thought to have inspired The Great Gatsby which is currently listed for $28.5 million.
Over in the village of Westbury, house prices have increased by 19 percent year-on-year to a median value of $590,000, Miller Samuel and Douglas Elliman data shows, as buyers are enjoying its revitalized downtown after the injection of a $10 million state grant into the area.
The area has become especially popular with people moving out of Queens, Brooklyn or Manhattan, Ramon Bonilla, a real estate agent with Platinum Winners in Westbury, told Newsday.
A four-bedroom home described as an ‘expanded ranch’ in Hedge Lane sold for $585,000 in January – more than $15,000 over its asking price of $569,900, according to Lucky to Live Here Realty.
A colonial-style property on Lynwood Drive went for $720,000 earlier this month, giving the sellers a $20,000 mark-up on the $699,999 asking price.
WESTBURY, LONG ISLAND: This colonial-style property on Lynwood Drive went for $720,000 earlier this month, giving the sellers a $20,000 mark-up on the $699,999 asking price
WESTBURY, LONG ISLAND: This four-bedroom home described as an ‘expanded ranch’ in Hedge Lane sold for $585,000 in January – more than $15,000 over its asking price of $569,900
Homes in the areas of Stony Brook and Medford have also risen in price by around 18 percent, reaching a median selling price of $530,000 and $397,500 respectively in the fourth quarter of 2020.
Mary Van Tuyl, a real estate agent with Daniel Gale Sotheby’s International Realty in Stony Brook, told Newsday buyers in Stony Brook are becoming embroiled in bidding wars as they grapple to get their hands on a short supply of available homes in the hamlet.
Meanwhile, Medford – by Hamptons standards – offers something for everyone from first-time homeowners to those looking for high-end homes.
Experts say buyers have up to 15 offers rejected before they nab a property and, even then, they are forced to pay $30,000 to $40,000 more than the asking price.
Similarly, the areas of Freeport and Lindenhurst recorded 15 percent spikes in house prices during the last year.
Lucky to Live Here Realty sold a three-bed split-level home on Davison Place in Freeport for $520,000, a $20,000 increase on its $499,999 asking price just 16 days after it went on the market in early January.
FREEPORT, LONG ISLAND: Lucky to Live Here Realty sold this three-bed split-level home on Davison Place in Freeport for $520,000, a $20,000 increase on its $499,999 asking price just 16 days after it went on the market in early January
FREEPORT, LONG ISLAND: This home on Shonnard Avenue sold for a $6,000 increase at $495,000 in January. The area’s waterfront Nautical Mile is a big draw, as well as its beaches and restaurants
FREEPORT, LONG ISLAND: This property on Saint Marks Avenue sold for $559,000 in March – $10,000 over its original asking price
A home on Shonnard Avenue sold for a $6,000 increase at $495,000 in January while a property on Saint Marks Avenue sold for $559,000 in March – $10,000 over asking price.
Francheska Gomez, a real estate agent with Fave Realty in Freeport told Newsday a house in Freeport will now set a buyer back around $450,000 with many people seeing ’10, 12 offers behind yours’.
‘If the interest rates are low, people are willing to pay that extra dollar to get their dream home,’ Gomez said.
The waterfront Nautical Mile is a big draw in the area, as well as its beaches and restaurants, while the northern area is most in demand due to its being outside of any flood zones, she said.
Meanwhile, homes in Lindenhurst sold for a median price of $436,749 in the third quarter of 2020, with many buyers moving from Brooklyn and Queens to its marina and revamped downtown with new restaurants and breweries.
A five-bedroom home in Kramer Street was sold by Lucky to Live Here Realty for $500,000 at the end of March, more than $20,000 over its $479,900 asking price.
The property, complete with its own pool, sold at the increased price after just five days on the market.
LINDENHURST, LONG ISLAND: This five bedroom home in Kramer Street was sold by Lucky to Live Here Realty for $500,000 at the end of March, more than $20,000 over its $479,900 asking price
LINDENHURST, LONG ISLAND: This home in Lido Parkway sold $16,000 higher than asking price for $515,000
LINDENHURST, LONG ISLAND: This Perry Street property sold for $15,000 more than asking price with a bid of $555,000
A home in Lido Parkway sold $16,000 higher than asking price for $515,000 and a Perry Street property for $15,000 more with a winning bid of $555,000.
Tabacco-Weber said it’s a trend she’s noticed across the whole of Long Island.
The issue is the market is ‘flooded’ with buyers but no sellers, she said, and it means homes are being snapped up in a matter of days or even hours.
‘Every house on the market if it’s a house you can move into right away, say you’re putting it on the market Thursday, you show it Thursday and have multiple offers over the asking price by Sunday,’ she told DailyMail.com.
‘[Before the pandemic] within six weeks or a month of a home going on the market we would have at least one offer but these days the last house I sold, I showed it for a total of 10 hours and got nine offers well over asking price.’
Open house events are attracting an influx of potential buyers, she added.
‘Potential buyers are lining up round the blocks 20 to 30 people deep to get in to an open house and there’s a lot of tension among buyers wanting to get in.’
Agent Christina F. Tabacco-Weber told DailyMail.com prices have increased across the whole of Long Island in the last year while there are around 50 percent fewer homes on the market. A line of people wait to view an open house
It’s become a common occurrence to see a stream of people line up around the block for open houses, with a typical event bringing in around 40 potential buyers compared to pre-pandemic numbers of just four or five
At one recent open house, she said she had 40 potential buyers turn up.
‘Usually, five or six potential buyers coming to an open house would be considered busy,’ she said.
‘So now agents are helping each other out with crowd control.’
Tabacco-Weber told DailyMail.com the pandemic exodus plays a large part along with the low mortgage rates of around 3.5 percent meaning many are managing to get onto the market for the first time.
‘People can just put 3.5 percent down and get loan. There’s a backlog from COVID and people are leaving city apartment buildings and now we’re at the normal spring market,’ she said.
‘And sellers are reluctant to put their houses on the market before they have somewhere else to go.’
More than $8.1 billion in home sales have been recorded in the Hamptons since lockdown began last spring, brokerage Brown Harris Stevens told the New York Post.
This is more than double the previous year’s sales.
In the Water Mill area of Southampton, a 42-acre estate made history this month as it went under offer for the highest price for a single-family home in the Hamptons, with a $145 million bid.
This home in Southhampton is under contract for a record $145million, making it the most expensive home sale in the Hamptons
Other big sales include the $84.4 million purchase of 650 Meadow Lane in Southampton, designer Calvin Klein’s oceanfront villa (above) to billionaire hedge fund manager Ken Griffin
Originally listed for $175 million in 2017, the home at 90 Jule Pond Drive is ‘the most expensive sale in the history of the Hamptons,’ according to Bespoke, a brokerage firm that listed the home with Sotheby’s.
The 20,000 square-foot, 12- bedroom, 12-bathroom home was built in 1960 for car-mogul Henry Ford’s grandson and family.
The entire property sits on 42.12 acres with the Mecox Bay to the east and the Atlantic to the South. The property peninsulas three ponds and also has the largest unobstructed ocean-front view in the Hamptons that spans nearly a quarter mile.
The seller is portfolio manager Brenda Earl, a former partner at equity fund Zweig-Dimenna. She purchased the property in 2002 for $21.75million from an Italian financier.
The buyer is said to be from an ‘American real estate family’ not based in New York, the New York Post reported.
Other big sales include the $84.4 million purchase of 650 Meadow Lane in Southampton, designer Calvin Klein’s oceanfront villa.
The new owner is billionaire hedge fund manager Ken Griffin.
German fashion mogul Jürgen Friedrich is also offloading his estate at 160 Ox Pasture Road in Southampton with a princely asking price of $75 million.
German fashion mogul Jürgen Friedrich is offloading his estate at 160 Ox Pasture Road in Southampton (above) with a princely asking price of $75 million
The most expensive current Hamptons listing is an oceanfront estate on Meadow Lane in Southampton which comes with a $175 million asking price (above)
Meanwhile, the most expensive current listing is an oceanfront estate on on Meadow Lane in Southampton which comes with a $175 million asking price.
The estate, dubbed Mylestone, boasts eight acres between the Atlantic Ocean and Shinnecock Bay and ocean views from every room, including its 11 bedrooms and caretaker’s cottage.
Thousands of New York City residents fled Manhattan when the city was the COVID-19 epicenter of the world.
By last May an estimated 420,000 of the city’s top 1 to 2 percent – who are responsible for half the state’s income taxes – had left.
Many rented or bought new properties in lower-tax states, such as Florida and Texas.
But research last month shows that many stayed within the Empire State, moving to outer boroughs or neighboring suburban counties that lie within a radius of just 100 miles.
Nearly two in five – or 37 per cent – of those who moved out of Manhattan settled in either Brooklyn, Queens, The Bronx, Long Island, and Westchester, according to a study of cellphone data conducted by the analytics firm Placer.ai.
The largest percentage – 14 per cent – of former Manhattan residents decamped for Suffolk County, where many presumably own second homes in the Hamptons and nearby hamlets along the southern shore of eastern Long Island.