The North Fork’s housing market continued its hot streak in the second quarter, riding sustained demand to set a new record for median sale price.
This is the third such record for the region in the last year, according to Miller Samuel’s quarterly report for Douglas Elliman, which author Jonathan Miller called “the greatest report ever.”
At $1.09 million, the median sale price is up more than 13 percent from the same period last year, and up 15 percent from the last quarter.
The North Fork has seen sales activity climb in the past two years as buyers expand their search radius outside the Hamptons, while listing inventory is a bit more constrained, according to Miller.
“The North Fork has benefited from excess demand in the Hamptons, which is helping prices rise or remain elevated and is burning off inventory pretty quickly,” said Miller.
Luxury home sales remained strong last quarter, with high-end deals making up a record share of activity across the East End. The North Fork’s share of sales above the $1 million threshold was the highest on record, and the share of Hamptons sales above the $5 million threshold was the second highest on record.
The higher end of the market tends to do better during periods of high interest rates, since wealthier buyers can circumvent the high rates with cash deals or alternative sources of financing, according to Miller.
“Someone that’s buying an $18 million Hamptons beach house who has a wealth advisor isn’t paying seven percent for a 30-year fixed” mortgage, he said.
The Hamptons market also had a strong quarter. Median sales price remained about the same year over year, at nearly $1.9 million, although it was down 7 percent from last quarter. Listing inventory remained strong, up 9 percent from the same period last year, as sales rose annually for the seventh quarter in a row.
Miller predicted “more of the same” for the market in the coming months if interest rates remain elevated: sales staying steady or rising, constrained inventory growth, and high-end outperformance.
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