Hamptons homeowners quickly know that the super-high prices they have charged to rent their property in the summer of the last two years are a thing of the past.
An increase in overseas travel, many former renters buying homes, and a combination of oversupply caused a sudden sticker slash in the outskirts of Tony Long Island.
“We have a huge inventory and people don’t rent it,” says Enzo Moravito of Douglas Elliman. Told CNBC A hot new trend in the region towards last-minute summer rental discounts. “And it spans all segments, from the very low to the very high in the market.”
This is in stark contrast to 2020, when the Hamptons’ housing demand was high. At a higher priceThis summer began with an oversupply of overpriced options that landlords are rushing to fill cheaply.
Owners of waterfront rental properties represented by Morabito wanted to earn $ 70,000 a month at the location, but potential lessors as hundreds of rental properties are still available. Was confident enough to compete with the $ 45,000 offer.
“The lessee wanted to split the difference, but now it’s a different market,” Moravito said.
In addition to availability and low prices: Many wealthy New Yorkers who have pushed prices up in the last few years have set foot in Europe this summer, taking advantage of the relatively recently reopened borders. But Europeans haven’t spent the summer on the side of the state yet, CNBC reported.
The war in Ukraine, rising inflation and fear of recession have also not helped the situation for Hampton homeowners.
Sotheby’s International Realty’s Harald Grant told CNBC that “many questions have been raised about the economy, both locally and nationally.” “It all affects the market.”
However, Hampton’s sales haven’t hit that much. Douglas Elliman’s Report In the first quarter of this year, “mainly due to the collapse of listed inventories, sales declined, but high demand was confirmed by intense bidding war activity.” It also states that the median selling price is $ 1.4 million. July 2020, Post reported The median selling price of the Hamptons is $ 1.08 million.