It’s rare that my blood pressure goes through the roof, but the article in today’s New York Post entitled, “The Slam’ptons: Unsold and Foreclosed Homes Plague East End,” really has me seething. I believe this poorly researched article is sensational, inflammatory and potentially very damaging to the real estate market in the Hamptons.
As you know, perception is reality, and if buyers BELIEVE this false information, then home sales suffer unfairly. It’s a sad fact…but good news can help sell houses and bad news keeps the housing market in a slump.
As I believe in relying on REAL facts, my team and I crunched some numbers today and came up with some interesting data that gives a more accurate picture of pre-foreclosure, short sale and foreclosed properties in the Hamptons.
Here are the facts:
There are 117 Hamptons properties listed on the MLS that are “Short Sale” or “REO/Bank Owned.”
We searched the following towns in the Towns of East Hampton and Southampton. They include Eastport, Montauk, Flanders, Water Mill, Bridgehampton, Amagansett, East Hampton, Speonk, Sag Harbor, Westhampton Village, Westhampton, Quogue, Remsenburg, Hampton Bays, East Quogue, Southampton and Southampton Village.
Of those 117 properties in above towns, keep in mind that 86 of them fall UNDER $500K
- 74% are under $500K
- 14% are in $500-700K range
- 8% are in $700K to $1 million range
- ONLY 4% are over $1 million
The Post reporter said that 48 homes worth more than $1 million are in foreclosure.
I did a search on the Hamptons Listing Service (HLS), which is also known as RealNet. There are currently 5,116 properties listed as being actively for sale in all of the Hamptons (same communities as noted above).
Then, I fine-tuned my search to see how many properties in the Hamptons that are for sale are listed for over $1 million. I came up with 2,728 homes.
So if you divide 48 homes into 2,728 homes you come out with 1.7% of the homes are in foreclosure (either short sale, REO/bank owned, or pre-foreclosure).
I spoke to industry expert Jonathan Miller of Miller Samuel Inc. today. He is the expert who publishes the quarterly market updates for Prudential Douglas Elliman. He told me that even in the best of times–prior to the Hamptons slump–about 1% of homes fall in the foreclosure category. SO WHAT’S THE FUSS???
I currently have several high-end homes in contract, ranging in price from $1.7 to over $10 million. Our phones are ringing. We’re showing homes. We’re SELLING homes. The Hamptons rental market is hot this season.
Bottom line: Tell your friends and family not to believe this B.S. that is just designed to sell papers. If you want the real news and facts about the Hamptons real estate market, call me! Enzo Morabito at 516.695.3433.