real estate

Buying Ain’t Easy, and Yachting’s Even Harder in the Hot Hamptons

Local real estate is still on fire, according to the Hamptons Q1 Douglas Elliman Report released by Miller Samuel Real Estate Appraisers & Consultants earlier this week. Bottom line: If you think you’ll find a bargain in the Hamptons—think again. Most likely sparked by the ongoing pandemic buying spree and coming summer season, the market pace is not slowing, sales volume is heavy and inventory limited.

Yours truly recently put this East Hampton modern into contract. Going, going, went!

Listing inventory shrunk at its fastest rate in more than 13 years of tracking, and year-over-year sales surged for the third straight quarter to the largest Q1 total in six years. The median sales price hit $1.3 million, rising sharply from $990,000 in Q1 2020, and increasing for the fifth consecutive quarter year over year. While sales surged market-wide, hitting 509 closings as compared to 343 in Q1 2020, activity on the $1 million–$5 million range nearly doubled, skewing the average sales price lower. Listing inventory for the luxury market rose significantly in contrast with the remainder of the market, which declined.

Now might be a great time to sell, but you risk not getting back in, at least not right away.

A Boat Without a Dock

If you thought the housing market was tough… It’s actually harder to find a boat and dockage right now. Getting a slip is never easy as the seasonal throngs make their pilgrimage east and prepare for a summer on the water, especially if you’re seeking a transient spot or accommodating a large vessel.

Mark Cuban’s boat FOUNTAINHEAD off the coast of Sag Harbor 2020. If you have to ask you can’t afford it.

Star Island in Montauk is basically full for the summer, whether you’ve got a 20-foot Bertram or a multi-million-dollar 100-footer, but overnights are still possible on a “hit-and-miss” basis. For less-fancy folk, Montauk Marine Basin actually has some open slips, but don’t expect to find a lot of popped collars and sweater-over-the-shoulder types among these local fishermen and salty sea dogs.

In fact I’ve been told by a boathing buddy that Strong’s Marine, with multiple locations around the East End, has limitied inventory. I also found out that Mill Creek in Noyac only has dry storage, though they’ll drop your boat in the water after you call, if you don’t mind waiting.

In East Hampton, Seacoast Enterprises Associates (SEA)—owners of Three Mile Harbor, Halsey’s, Gardiner’s and Harbor marinas say they’re “uber busy across all four marinas.” SEA’s business has been ramping up since Covid hit and two other local marinas sold, adding to the already healthy annual demand.

What does it all mean? If you’re only just beginning your necessary searches to live the East End boating life, and you want to hobnob with the yachting elite, you may have to settle for a kayak or a 3 hour tour (which I strongly suggest you pack a steamer trunk because you never know). Clearly, summer 2021 is all about planning. Nothing is going to be easy without some forethought.

MAY THE ODDS BE EVER IN YOUR FAVOR!

Summer Heat Brings Hamptons Hunger Games and No Contingencies

We’re certainly not living in Panem here on the East End, but the Covid dystopia is fading and a new series of real-life Hamptons Hunger Games are catching fire in the local dining scene. As restrictions fall away and outdoor dining finds an even firmer foothold, my friends in the restaurant biz are anticipating getting absolutely slammed this summer. Remember, Europe is probably not an option this summer so get ready for the crowds.

One high-profile area restaurateur I know says demand for reservations couldn’t be stronger. They’re getting calls for tables all the way through Labor Day! In fact, this one particular restaurant group has stopped taking standing reservations rather than endure what was shaping up to be a booking nightmare. I’ve been told standing tables end up with one of three results—the customers show up, they don’t show up, or the reservation is given to someone else with a different number of diners, which can cause all sorts of problems at a packed restaurant. And if business is booming, who needs it?

THE UNION DOUBLE AT UNION BURGER BAR (UBB)

“We see the light at the end of the tunnel,” Southampton Social Club, Union Burger Bar (UBB) and Union Sushi & Steak owner Ian Duke said, pointing out that he’s not surprised people are making reservations in anticipation of fewer restrictions and the possibility of this pandemic finally running its course. During what we hope are the takeout-and-delivery-only days of yore, Duke found great success in Southampton with his recent chicken to-go concept, The Coop, but times are a changin’. With brick-and-mortar dining now on the mend, he’s moving The Coop from its ghost kitchen on Elm Street to UBB on Bowden Square where he can feed fried chicken and wings to actual in-person customers. And Duke says “The phones are ringing.” 

Meanwhile, East Hampton Village just approved outdoor dining on a more permanent basis. Local restaurants, retail food shops and other eateries—including inns and hotels in residential neighborhoods—will be permitted to operate sidewalk café areas and private outdoor spaces between April 15 and November 15.

Needless to say, reservations are hot stuff right now. They’re beginning to look like Village beach passes—everybody wants them. So, if Hamptons restaurants don’t skip it altogether and continue to offer tables in advance, I wish you good luck actually getting one.

As they say on Panem, “May the odds ever be in your favor.”

Oh, and in case you were wondering, word is that private chefs are also in severely short supply. Perhaps curbside pickup will remain popular after all?

Forget the Contingency if You Want Your Deal to Live

3 Bridge HIll Lane, Bridgehampton

Just like local dining and reservations, Hamptons real estate is on fire right now. But even in this roaring market, mortgage contingencies are a surefire deal killer. Yes, contingencies are pretty standard in purchase agreements but in peak season, sellers aren’t willing to risk going into contract only to have the deal fall through two weeks before Labor Day because a buyer can’t qualify for financing. It’s a bad look and a great way to lose all that summer heat. No one wants to wait another year when they’re ready to sell now. 

Bottom line: Buyers, be ready to buy. Sellers, there’s no shortage of demand, so make sure you take advantage of it.

Sag Harbor Love Shack to Become Coffee Klatch at Latham House…and ATTENTI Shoe Lovers!

I caught wind of some good gossip out of Sag Harbor: UNCONFIRMED RUMOR HAS IT… The famed 1790-built Peleg Latham House, listed by Brown Harris Stevens for $5,999,000 and current home of pink and wispy women’s clothing store LoveShackFancy, just sold to Jack Mazzola, owner of Jack’s Stir Brew Coffee. I wonder if the B-52s get a cut? After all, Fred Schneider is no stranger to these parts.

Unfortunately for Mazzola, I’m also hearing LoveShackFancy—”She’s a dreamer, a lover, elegantly ethereal, and romantic at heart…”—might not want to give up their lease. And why would they? Located at 117 Main Street, Latham House is one of Sag Harbor’s most historic and iconic buildings.

From Brown Harris Stevenhttps://www.bhsusa.com/hamptons/village-of-sag-harbor/117-main-street/house/861623

The three-level, 3,162-square-foot federal-style home offers more than 1,150 square feet of prime retail space and a Main Street-accessible residence with exposed wood beams, seven custom brick fireplaces and beautifully aged hardwood floors. And while it’s old, Latham House isn’t short of luxury and pomp, including a spacious living room, formal dining room, gourmet kitchen, full bath, laundry and butler’s pantry on the first floor. Jack will have to supply his own butler, but it’s nice to know Jeeves would be well supplied. This place exemplifies old-world charm, with history oozing from every exposed brick and venerable wood beam.

Outside, the backyard features a spacious brick patio, gunite pool, private garden and manicured landscaping.

The BHS listing started at $7,999,000 in January 2020, dropped to $6,995,000 last July and finally landed at an irresistible $5,999,000 in February.

Italian Fashion Comes to EH, Twice

Speaking of new business, two of Italy’s most recognizable fashion brands, Gucci and Tod’s, now have spots in East Hampton Village. 

Shoe biz and more in East Hampton!

Passersby in EH will have seen the pink flowers and Gucci logos filling the windows at 17 Newtown Lane, which used to house Club Monaco. Renovations are underway behind those covered windows, and soon the flower motif will give way to displays by one of the fashion world’s most seminal designers. Watch gucci.com for updates, including the opening date.

Meanwhile, just down the block at 47 Newtown Lane, Tod’s is open for business selling shoes, belts and other fine Italian leather goods in the former home of Tory Burch.

Everyone is waiting for what’s going to be a gangbuster summer, and with Europe still off limits it’s sort of a foregone conclusion. Hamptons shopping is back, baby.

FERRIS SAID BEACH PERMITS ARE GOING FAST!

Almost as coveted as a
Covid vaccine!

So East Hampton Village beach passes went on sale just a few days ago.   So, how is it going?   Um, it’s sick. My best friend’s sister’s boyfriend’s brother’s girlfriend heard from this guy who knows this kid who’s going with the girl who saw Ferris at 31 Flavors last night and he said they sold a crazy number of passes already. So,  I guess it’s pretty serious.     According to the friend of Ferris, 2500 beach passes were gone after only two days of sales.   In a normal year, that number would be closer to 200.   So if you’re looking forward to sunning in the sands of any of the village beaches, you better run to Village Town Hall (86 Main St., East Hampton) with your license, registration or check and get your permit.  You can also try going on line by clicking here:

https://easthampton.permits.basgov.com/

Meanwhile, the real estate market is expected to do very well in 2021, with mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry especially here in the Hamptons, is the lack of homes available for sale today. Last week, the National Association of Realtors (NAR) released their Existing Home Sales Report, which shows that the inventory of homes for sale is currently at an all-time low. The report explains:

“Total housing inventory at the end of December totaled 1.07 million units, down 16.4% from November and down 23% from one year ago (1.39 million). Unsold inventory sits at an all-time low 1.9-month supply at the current sales pace, down from 2.3 months in November and down from the 3.0-month figure recorded in December 2019. NAR first began tracking the single-family home supply in 1982.”

What Does This Mean for You?

If You’re a Buyer:

Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war. Calculate just how far you’re willing to go to secure a home and lean on your real estate professional as an expert guide along the way. The good news is, more inventory is likely headed to the market soon, Lawrence Yun, Chief Economist at NAR, notes:

“To their credit, homebuilders and construction companies have increased efforts to build, with housing starts hitting an annual rate of near 1.7 million in December, with more focus on single-family homes…However, it will take vigorous new home construction in 2021 and in 2022 to adequately furnish the market to properly meet the demand.”

If You’re a Seller:

Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.