The East End market in the 4th quarter of 2022 continued to slow, as expected, compared to the record-breaking market of 2021. Multiple factors contributed to a softening market including diminished inventory, higher interest rates, and recession fears.
In the Hamptons, transactions decreased by 11% and sales volume dropped by 17% compared to Q4 2021. Despite this, the average sales price dipped only slightly by 6.1% to $3,247,757 while median price jumped 14.1% to $1,900,000.
The Sag Harbor market realized the most notable surge in average price, increasing 32.4% to $3,311,656. Southampton experienced the largest increase in median price which jumped 24.5% to $1,307,000. The market west of the canal also saw a healthy gain in average sales price by 25.4% to $2,571,999, largely due to two sales in Quogue at $12M and $11.75M. The luxury end of the market saw 17 deals above $10M in Q4, which is down 26% from Q4 2021.
Negotiability in Q4 of 2022 rose to 4.25%, compared to 3.01% in Q4 of 2021 and 3.05% in the third quarter of 2022.
In the North Fork, the number of transactions slipped by 27% and sales volume decreased by 34% from Q4 2021. The average price rose 5.4% to $1,116,036. The average DOM increased 13.2% to 75 days.
There has been an increase in activity at the start of 2023, coupled with an upswing in buyer inquiries. We are keeping a close eye on interest rates along with inventory levels and remain optimistic for a robust spring/summer season.