When it comes to fashion (and television), orange may be the new black. However, when it comes to the high-priced real estate market in the Hamptons, New York: smaller homes are taking over and it appears that “small is the new big.”
Looking at the Hamptons may seem so be only a microcosm of the market. However, homeowners and buyers in this wealthy region are closely tied to the finance industry as a whole. The Hamptons real estate market therefore usually parallels the financial sector well.
McMansions Are On The Way Out
Through September, the Hamptons saw 517 total home sales which is 12% more than the 10-year quarterly average. That’s a lot of homes, however inventory for smaller homes is dropping rapidly.
Deals for properties costing less than $500,000 fell 12% during this time while sales of homes priced between $500,000 and $999,000 rose by 22%. Following this trend, homes priced between $1 million and $1.99 million climbed by 12%.
All this buying may seem to contradict the idea that “small is the new big.” However, realtors believe that there is a lack of inventory in the non-luxury category precisely because of its recent popularity. Therefore, buyers are being forced into the higher-end categories due to a lack of availability.
“When you look at the inventory under a million, that’s the largest shortage, so buyers stepped up to the next level of the market,” said Ernest Cervi, a senior vice president at Corcoran Group, a New York based real estate firm.
Indeed, the higher priced homes seem to be less desirable, with deals in excess of $3 million dwindling noticeably.
Smaller Homes? Everything is Relative
When it comes to The Hampton’s, everything is relative. Terms like “small” or “modest” hold a much different meaning there than in Bozeman, Montana. Indeed, each city is different which is why City vs City is a powerful tool for anyone looking to move to a new area.
Compare your current city with one you’d like to move to. Calculate your savings, income, rent and other living expenses to see which city stacks up best. If you’re looking to make a move, you need a secret weapon like City vs City to help you make an informed decision.
Orange may be the new black and small may be the new big; but City vs City is the new must-have app for anyone looking to make their next move.