The East End real estate market is gradually returning to normalcy after the frenetic activity during the Covid era. Persistently higher mortgage rates and inventory constraints have led to a decline in transactions and less opportunities in the second quarter of 2023.
On the South Fork, the total number of transactions decreased by 43.5%, with sales volume declining by 48.4%, compared to the second quarter of 2022. The average sales price also saw a slight decrease of 8.7% to $2,837,301. However, there was a notable, positive aspect as the median price jumped by 10.7% to $1,910,000.
During the second quarter, nearly all submarkets on the South Fork experienced significant declines, year over year, in both transactions and sales volume, with the exception of Shelter Island. Shelter Island stood out with an impressive 41.2% increase in sales volume and a 50.6% surge in average sales price. West of the canal experienced a healthy 10.7% increase in median price, reaching $2,500,000. And Southampton, despite facing the largest decline in volume and units sold, saw a jump in median price of 42.6% to $2,020,000, mainly driven by seven sales north of $10M. The luxury segment of the market saw 14 deals above $10M in Q2, which is down 22.2% over the same period last year.
The North Fork also experienced a decline in sales volume, dropping by 37.8% to a total of $94,151,486. The number of transactions decreased by 35.1%, with only 83 transactions compared to the previous 128. Furthermore, average price decreased by 3.68% to $1,134,355, while median price showed a slight incremental increase of .33% to $908,000. As for the average Days on Market, there was a nominal increase of 1.61% with properties taking an average of 63 days to be sold during this period.
Despite the weakened performance in the second quarter, there has been an increase in market activity lately. Buyers and investors are finding value in well-priced properties as the market continues to transition. Our hope is to see an increase in inventory this fall, providing even more opportunities.