Housing slump comes to the Hamptons

Tuesday, April 01, 2008 | 12:15 PM

Manhattan has been mostly immune from the Housing slump. This has been primarily due to lots of Wall Street money, and the cheap dollar, which has made real estate in the NY area very attractive to Europeans.

The Hamptons are apparently less immune. Its a seasonal market, so when problems show up, they do so very quickly. Its now the beginning of the rental/purchase season, and the issues are brought into bright relief:

"In a sign that falling prices and home sales gluts are no longer limited to the nation’s declining rust-belt cities or bubble markets, prices for gilt-edged properties in East Hampton and Southampton have fallen sharply.

The Long Island resort towns, among the wealthiest and most well-connected in the US, experienced a boom between 1998 and 2007 when home values quadrupled...

The three-month running median sales price of single-family homes in the two towns fell 19.2 per cent to $638,600 (€400,000, £320,000) between December and February, according to Suffolk Research. That is almost as much as the 19.3 per cent drop in home prices that Miami and Las Vegas, where the boom and bust in the housing markets has been most dramatic, suffered in the whole of last year, according to the S&P Case-Shiller house price indices.

As we noted over the weekend, sales of vacation property fell 31% across the US, against a 10 per cent drop in sales of homes bought to live in.

The Hamptons are now facing a high end rental market with decreasing demand, amid a glut of properties to let. FT specifically mentioned several properties owned or rented by Bear Stearns executives that are back on the market. Agents said the rental market is off 10%, after several years of double digit gains.

I wonder if this might be presaging weakness in the NY housing market . . .



>

Source:
Housing slump comes to the Hamptons
Daniel Pimlott
FT,  March 31 2008 19:35
http://www.ft.com/cms/s/0/ca4ccbbe-ff49-11dc-b556-000077b07658.html

See also:
New York City Real Estate Market Slows as Wall Street Cuts Jobs 
Sharon L. Lynch 
Bloomberg, March 31 2008
http://www.bloomberg.com/apps/news?pid=20601109&sid=ahgWx1z6LFxE&

Home building tumbles for 24th month   
MARTIN CRUTSINGER
AP, April 1, 2008
http://news.yahoo.com/s/ap/20080401/ap_on_bi_go_ec_fi/economy_14

Tuesday, April 01, 2008 | 12:15 PM | Permalink | Comments (28) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e551a1d1fb8834

Listed below are links to weblogs that reference Housing slump comes to the Hamptons:

Comments

Another example of "contained".

Posted by: Pat G. | Apr 1, 2008 1:03:28 PM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner