The East End market maintained a slowdown throughout the first quarter driven by diminished inventory, consistently higher interest rates, and buyers who asserted more patience. The market is now bifurcated with some properties languishing due to overpricing while others trade relatively quickly with proper pricing and perceived value.
On the South Fork, the total number of transactions decreased by nearly 63% and sales volume dropped by 53% compared to Q1 2022. However, as a consequence of higher priced sales and tighter inventory, the average sales price jumped by 26% to a record $3,571,628 while median price increased 24% to $1,975,000. All markets on the South Fork experienced significant declines in both transactions and volume in the first quarter.
Shelter Island realized only two transactions, resulting in an 82.1% fall in sales volume and a 77.8% decline in the number of transactions.
Largely due to five sales over $10M, the Southampton market realized the most dramatic gain where
the average sales price rose by 48.5% to $3,577,002, and the median price leapt 75.6%
Similarly, East Hampton, with six sales north of $10M realized a jump in average price by 24.3% to $4,145,754 and a rise in median price by 18.7% to $2,199,400. The luxury end of the market saw 13 deals above $10M in Q1.
Negotiability on the South Fork in Q1 of 2023 continued to rise to 5.61%, compared to 2.86% in Q1 of 2022 and 4.25%
in the fourth quarter of 2022.
On the North Fork, the number of transactions slipped by 31% and sales volume decreased by 12% from Q1 2022. The average price rose 27.3% to $1,230,484 and median price rose 14.6% to $930,000. The average days on market increased 2.82% to 73 days.
We remain optimistic heading into the second quarter. As buyers settle into the new norm of rates, sellers are becoming increasingly negotiable. And when a property is priced at or below the market, it often results in multiple bids. As we move forward in this current cycle, one thing remains constant - the East End is, and will continue to be, a sound investment.