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New York’s luxury real estate market hits a median price of $2.34M amid a buyer boom
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“On the contrary, the middle market is very sensitive to the rate. A one-point fluctuation in mortgage rates greatly affects affordability. But when you write a check for $8 million or $15 million in cash, rate fluctuations become background noise,” he said. “It highlights a fragmented market that is becoming more apparent nationally. Rate sensitivity creates friction in the middle class, while the top 10% of buyers continue to interact more easily. The Hamptons is just a scaled-up version of what’s happening across the country.”
But inventory is tight. Despite a slight increase in listings across the region in the fourth quarter of last year, delivery months fell to 6.8 months, down 24% from 2024, while luxury months also fell sharply to 16.4 months.
Buyers are reportedly competing very hard for waterfront properties, turnkey, renovated homes in prime areas like Southampton, Sag Harbor and East Hampton.
FOX Business’ Madison Alworth reports live from Brooklyn, detailing the concerns of New York City landlords about Zohran Mamdani’s proposed rent freeze plan and the impact of rising property taxes.
“Construction timelines, labor costs and uncertainty allowances have made ready-to-build products a premium commodity,” notes Hofer. “Waterfront and properties with protected water views continue to command high demand, and that’s where buyers are willing to stretch the most. There is a limited amount of waterfront in the Hamptons, and sophisticated buyers understand that scarcity.”
Although not fully captured in the report, the increase in early summer employment is consistent with the data, as buyers make earlier purchases, luxury confidence remains high, and demand for sevens is not decreasing.
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Meredith Whitney Advisory Group CEO Meredith Whitney discusses the forces driving investors and traders on ‘Barron’s Roundtable.’
“Strong rental demand is often the best indicator of buyer confidence. When high-quality rentals come in early and prices are high, it shows that people want to be here and that the Hamptons lifestyle remains important,” said Hofer.
“For buyers who are waiting for a significant price correction,” he said, “the rental market suggests that the underlying demand has not weakened. In fact, many renters are finally converting to buyers after seeing the market for themselves. Sitting on the sidelines in the hope of a dramatic pullback may mean competing later in an even stronger inventory.”
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