Nearly $1 billion worth of real estate in the Hamptons was sold in the last quarter as wealthy New Yorkers fled the city, according to a new report.
Between July and September, home sales on the upscale East End of Long Island topped $973 million, a staggering 102 percent increase from the same period last year, according to a report on Thursday from luxury brokerage Brown Harris Stevens.
It came as soaring violent crime, declining quality of life, and pandemic lockdowns drove a mass exodous from New York City, with many among the city's elite turning their eyes east toward Hamptons' sandy shores, long known as a retreat for the ultra-rich.
Sales of single-family homes in the Hamptons totaled 448 for the third quarter, an increase of 51 percent from last year, and the highest number in at least five years.
This home in Sagaponack with tennis court and pool went for $12 million in July. Nearly $1 billion worth of real estate in the Hamptons was sold in the last quarter
Between July and September, home sales on the upscale East End of Long Island topped $973 million, a staggering 102 percent increase from the same period last year
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'As restrictions on in-person showings eased, the pent-up demand for housing from the second quarter resulted in a seller's market,' said the Brown Harris Stevens report.
Dolly Lenz, of Dolly Lenz Real Estate, told the New York Postthat many of the New Yorkers fleeing the city for the Hamptons had never even visited the East End before COVID-19 lockdown began.
One of her clients, a hedge funder with a wife and four kids, fled the Upper West Side into a $500,000 Hamptons rental in June.
'This is a family of liberal Democrats who live in a beautiful apartment on the Upper West Side. But they no longer felt safe,' Lenz said. 'They took stock of their lives and realized they needed a place to go if something goes wrong — a safe haven.'
In recent months, the Upper West Side has been embroiled in controversy over the hundreds of homeless men who have been housed in luxury hotels thereat taxpayer expense during the pandemic, leading to complaints of lewd displays and open drug use.
And across New York City, violent crime has soared, with murders up 76 percent in September from the same month last year, and shooting incidents jumping 127 percent.
Combined with the punishing misery of lockdowns, it has all led to a mass exodus from the city. Though exact numbers are hard to come by,more than 246,000 people filed for a change of address form to leave the city between March and August.
Sales prices in the Hamptons averaged $2,173,353 for the quarter, an increase of 33 percent from last year, while the median price jumped 26 percent, to $1,267,500
This mansion in East Hampton with swimming pool sold for $11 million in July
The five-bedroom home in East Hampton was among the many sold in the last quarter
This beachfront manse in Sagaponack sold for$20,500,000 in September
Sales prices in the Hamptons averaged $2,173,353 for the quarter, an increase of 33 percent from last year, while the median price jumped 26 percent, to $1,267,500.
The highest end of the market saw the biggest jump in sales volume, according to the report.
Homes in the $5 million to $10 million range saw the largest proportional sales increase, with a jump in dollar volume of 261 percent.
Desperate buyers are clamoring for properties outside of the city, and bidding wars are common.
'I've never seen a market like this,' Gary DePersia, a Hamptons broker with Corcoran, told CNBC. 'It doesn't show any signs of slowing down.'
Jonathan Miller, CEO of Miller Samuel, told the outlet that one enduring trend of the pandemic will be the rise of the 'co-primary residence.'
A seven-bedroom mansion in East Hampton sold for $10,075,000 earlier this month
This beachfront mansion with pool in East Hampton sold for$35,750,000 in April
This beachfront mansion with pool in East Hampton sold for $35,750,000 in April
Sales of single-family homes in the Hamptons totaled 448 for the third quarter, an increase of 51 percent from last year, and the highest number in at least five years
Given the rise of remote work and schooling in the pandemic, families can now spend equal time in the city and at their rural or resort homes.
'It's not a second home anymore,' Miller said. 'It's on equal footing.'
The most expensive Hamptons home sale of the year so far was in Southampton, where designer Calvin Klein sold his oceanfront estate for $84 million in early March, before the pandemic hit.
The rumored buyer is hedge funder Ken Griffin, who also bought America's most expensive condo at 220 Central Park South.
