CNBC has been trying hard to make everyone forget last year ever happened, and that the global financial system is one big ponzi scheme. And by the look of luxury home sales in the Hamptons they have finally succeeded. Bloomberg reports that "home sales in the Hamptons, the Long Island beach retreats favored by Hollywood celebrities and Wall Street financiers, surged 32 percent in the third quarter as deal seekers landed discounted properties."
With buyers out in force, sellers have else emerged:
Luxury sales throughout the Hamptons and Long Island’s North Fork climbed 31 percent in the quarter to 46 transactions.
The median luxury price dropped 11 percent from a year earlier to $4.28 million, according to the survey. Miller defines the luxury market as the top 10 percent of sales, which in the third quarter included homes priced at $3.2 million or more.
High-end sellers who cut their price did so by an average of 17 percent compared with 14 percent a year ago.
Yet if you are lucky enough to be on the receiving end of the middle class trade, you are in luck: there still are beachfront properties where you can invest the wealth transfer capital.
Hamptons sales peaked in the second quarter of 2004, when 1,052 properties were traded, Miller said.
While this year’s third-quarter sales rose, so did the inventory of unsold homes. Listings climbed 11 percent from a year ago to 1,735 properties.
“You had people who had been trying to market their property for the past couple of years who re-entered the market,” Miller said. “You got the ‘Go’ signal with all this activity.”
At the current sales pace, it would take almost 16 months to sell all the Hamptons homes listed, Miller said.
Another critical forward looking indicator, the "Wall Street Prosperity Via Middle Class Rape Index" aka the Craig's List hooker hourly going rate, is currently being calculated by several hundred SPARC stations, and results will be tabulated shortly for popular consumption.