April 14, 2024

This is the story of two housing markets on the eastern end of Long Island.

The North Fork has spent the past six months outperforming the Hamptons, but the two places changed positions in January, reports Miller Samuel for Douglas Elliman.

Newly signed contracts and new listings increased in the Hamptons last month, while activity decreased on the North Fork.

Although mortgage rates remain high, report author Jonathan Miller said the Federal Reserve’s pivot from raising interest rates could spur activity in the Hamptons.

“The market is starting to move forward,” Miller said. “I can’t say specifically whether it’s because of the Fed’s stance in December, but it probably didn’t hurt.”

In the Hamptons, new signed contracts increased 4 percent, from 46 in January 2023 to 48 in January 2024. New listings increased six percent from 84 to 89 during the same period.

Contract signings for homes asking $1 million or more increased 26 percent year over year, one of the few increases in this segment in recent months and the largest increase since May 2021.

On the North Fork, there was a slight decline in new signed contracts last month, down from 13 to 12 year-over-year. New listings declined 43 percent over the same period, from 23 to 13.

Although activity declined overall, demand for newly signed contracts for homes $1 million or more annually doubled, although the numbers were small.

Miller stressed that the increase should not be exaggerated, but that it indicated a “net positive pattern after several years of declining sales.”

On a monthly basis, new signed contracts in the Hamptons increased 12 percent, compared with a 20 percent decline in December. New listings increased 154 percent from December to January, after a 63 percent decline from November to December.

“New listings like this are welcomed in the market and are one of the reasons why we are expecting more transactions than this time last year,” Miller said.

On the North Fork, new signed contracts declined 56 percent month-over-month, after a surge in December. New listings declined 35 percent.

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Source: therealdeal.com

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