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"The International Buyer Has Been Absent" Unsold Hamptons' Mansions Pile-Up As Bubble Bursts
Just a few months ago, Hamptons 2nd home-hunting was an elitist's dream. Home sales were surging (highest sicne 2007's peak) even as home prices soared (in the face of bad weather and economic angst). But that has all changed. As Bloomberg reports, sales of luxury homes in the are have tumbled 16% YoY in Q3, prices have plunged 18% YoY, and inventories are surging (up 34%). The reason is simple, as one realtor notes, "the international buyer has been absent."
Mid-Summer, The Wall Street Journal could not be more excited about the bubble in Hamptons' homes...
As the peak spring season for home sales begins, the market across the region is showing considerable strength, especially in the Hamptons, with its deep pool of affluent summer-home buyers.
Despite frequent winter storms that snowed in many Hamptons properties on the eastern end of Long Island, the number of sales from January through March was the highest during any first quarter since 2007—during the last real-estate boom, market reports show.
But, it's all changed... (as Bloomberg reports)
New Yorkers who want to buy a high-end retreat in the Hamptons have plenty of options to choose from.
Sales of luxury homes in the area, known for its beachside mansions attracting financiers and celebrities, tumbled 16 percent in the third quarter from a year earlier to 52 transactions, according to a report Thursday from appraiser Miller Samuel Inc. and brokerage Douglas Elliman. The inventory of such properties -- defined as the top 10 percent of the market by price -- climbed 34 percent to 292.
Wealthy buyers on Long Island’s East End are taking a pause after several years of heated sales, leading prices to fall as more houses come to the market. The median price of Hamptons deals completed at the luxury level dropped 18 percent from a year earlier to $5.3 million, in contrast to an increase for lower-cost homes.
“People who had the cash, they came out and bought the last couple of years so they’ve kind of leveled off,” Dottie Herman, chief executive officer of Douglas Elliman, said in an interview. “They’re still here, but the demand has just gotten flatter.”
With many Hamptons luxury buyers employed by the financial industry, the sales drop may have been tied to declines in global markets, said Ernest Cervi, a senior vice president at brokerage Corcoran Group who oversees Hamptons sales. The Standard & Poor’s 500 Index sank 6.9 percent in the quarter, the worst performance in four years, while currencies and commodities also slid.
“There was a lot of turmoil on the financial markets around the world and that might have stopped people from pulling the trigger,” Cervi said. “The international buyer has been absent.”
* * *
Who could have seen that coming? A bubble in luxury real estate driven by 1%-er equity gains and a desperate outflow of capital from various "growth" countries around the world suddenly collapses when stocks stumble and those nations introduce capital controls.
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I recall pre-Lehman (nod to ZH) that bankers dialed down the conspicuous spending, presumably because they saw it coming.
Think of how many Syrian "refugees" you could squeeze in that dump!
Why heavens above! Everybody needs a home in the Hamptons! Mrs K and I have been looking for over a decade and just can't find the right spot. Not big enough, a tad too pricey.
If "God" really wanted to start the End of Days, the Hamptons would be a great place to do live on CNN.
Just stop and think about it, its a freaking island and on the other end of it are 8 million Obama Kids between you and the mainland, the other side is well an angry ocean. Talk about being in a vise.
Excellent point.
Time for cash for Mansions
"Us vs them". Truly, the right-wing never learns.
Conflict and tensions among people are reduced by inclusiveness, and become exacerbated by exclusion. You are a key part of the problem you address.
EML- this is truth, simple and eternal.
Bath House should buy them and raffle them off at 10$ a ticket.
What if u were one of those "refugees'.
Unpossible. We would have never fled our home soil. Therefore, we would be there to assist Putin in kicking the ass of the RKM (Rothschild Khazarian Mafia).
Shit, meet fan. Maybe bankster and stawk folks started thinking about not being so target friendly.
Wall St. bonuses to shrink or go poof!
Nah, I bet they just started buying into luxury prepper caves instead. Just saw an article on that here, in fact.
http://www.npr.org/sections/parallels/2015/06/23/416828057/when-corrupt-...
because they fit right in here.
Maybe it has something to do with China executing corrupt officials, while the US gives them the keys to the strongroom.
Ha, ha, ha - they're all coming to Australia now, Sydney and Melbourne. Wonder why? Because we adore high standards.
we will see, this very weekend
theres a lot of folks eyeing the auction clearance rates very closely right now
SP my brother's neighbor put his apartment up for sale in Sydney but whereas even a month ago he would have gone for auction, he has listed it for less than the reserve he was planning for in September. Then again, back in 85 he paid $37K fr it so I don't think he's too unhappy.
Looks like Bill Ackman missed his window, in more ways than one...
That house looks just like my place, but just much bigger, nicer and in a different location. Otherwise, a spot on carbon copy.
Nah, they just stuck a MOAR filter onto the camera before taking the shot.
QE Infinity can solve that exceptionalism problem. China built whole fake cities with their fake money. What will it take to convince the developers of New York shitty that they must follow in the footsteps of China and build more supercondos in NY? Why is America not building whole fake cities to keep up with China's fake cities? That's what the International Buyers want.
Apparently no one in the U.S. understands that if you LIVE in your investment house, it get's dirty, and becomes less desirable.
My Grandma understood that concept 50 years ago - her "front room" furniture was covered in plastic, there were plastic covers over the lampshades, and a plastic runner over the carpet as you walked through (you would never sit in there) the room to get to the "living" part of the house. Appearance is everything................
the stock market is rigged with the government and its subsidiaries like the Federal Reserve pulling out any and all stops including the blood of its citizens to keep the wealthy elites afloat. if you aren't invested in the market the last couple of years you are a fool because the game is rigged you might as well get whatever you can cause they'll sure take every last red cent of yours.
It's funny Tyler. I'm very stable in my corporate debt trade.
Pay attention to the things that you have control over, and do your> diligence do to your personal future.
Love you post.
Hope you don’t mind me adding these:
· Subprime religion
· Subprime demographics
· Subprime outcome
WE all make mistakes " Sweet Heart".
It's how we pick ourselves UP!, and move forward, that defines individuals.
Just ask that little midget assclown running
Alibaba.comCheers, Yen.
Don't go all CXhines on me.
subprime asshole
Shortage of jews?
they're bailing because IT'S GOING TO GET VERY, VERY COLD IN THAT LOCATION...FOR MANY, MANY MONTHS OF THE YEAR
After they buy, they see how much the traffic sucks. Word's getting out.
I don't know what's happening in the rest of the Caribbean, but there is a mini-boom in high-cost homes here in Cayman. Much of it Russian money, I'm told, but US citizens are keeping the prices of beachfront condos up.
http://www.jpost.com/LifeStyle/The-Jewish-Hamptons
Has the exodus begun as the usurious have no bigger fool to offload on? Like a snake eating its own tail, the world is fed up with debt, and the Talmudist freakery: the love of money, and hatred for all non-jews.
Prediction: expect more jewish lightening in the Hamptonstein properties. After all, they must get their money back; they are the 'chosen ones', and their insurance companies can pick up the bill, according to their chutzpah.
The Jews are hanging by a thread. The Jews are just a distraction
Smorgasbord, for the Rockefellers.
What a racket, running numbers, for Satan2 >
Satan (Hebrew: ??????? satan, ] Twice.
I lend you some $ to blow-up the bad guy. I have a bank, that will give you ZIRP terms. FOREVER!
"Prediction: expect more jewish lightening in the Hamptonstein properties."
So, was that a clever play on words (i.e. "lightening, as in getting lighter), or are you just too fucking stupid to know the difference between LIGHTNING and LIGHTENING?
Too many disaster movies with mile-high tsunamis.
I've moved inland - and uphill.
When the financial collaspe happens good place for inner-city displaced zombies to wander to.
Australia is different from the likes of the US and Ireland.
Prices only go up here, all the China man wanna come here. Buy buy buy!
...well, hey now, maybe we can market homes toward the people who are already here then. It's not like we're going to entice new, wealthy immigrants to come here in 2015. What are they supposed to come here for? The high taxes? The threat of even higher taxes? Our "bustling" economy? We're really going to be pressured to start selling homes if the socialists have their way and drive the corporations out of the country with their litany of desired laws/regulations/taxes. Donald Trump wants a wall to keep immigrants out... and Bernie Sanders is gonna need a wall to keep rich people from LEAVING.
You mean the Chinese buyer.
Nah, they're mainly buying up where there are a sizable Chinese population are like Queens and BK. Last I check this area isn't exactly that...
Apparently, those NAR people never took the time to understand the concept of "boom and bust."
Now, they've sown the wind and will reap the whirlwind (love those Biblical references).
I can hear Lawrence Yun now, "there's never been a better time to buy a mansion in the Hamptons."
I see many LI bed and breakfast properties in the future.
52 homes sold as opposed to 73 the year before. Big deal!
wonder if t1% have read bonfire of the vanities