The Long Island real estate market experienced a strong third quarter in 2016, with the most sales in 14 years and the lowest inventory in 13 years, according to a report from Douglas Elliman. The median sales price increased 3.8 percent to $405,000 and the third quarter saw the quickest market pace in 13 years.
In the Hamptons, listing inventory dropped again for the 5th consecutive quarter. There was a surge in sales above $5 million and the luxury market outpaced the overall market by price trend. The median sales price plunged 13.2 percent to $825,000, while the average sales price grew a minimal 0.6 percent to $1,746,413. The number of sales was 517, a 2 percent increase and listing inventory fell 10.4 percent to 1,533.
“The Hamptons market saw a small increase in sales after 5 quarters of year over year declines,” explained Jonathan J. Miller, President and CEO of Miller Samuel Inc. “Two patterns that stood out this quarter was the surge in sales below $1 million, accounting for nearly 60 percent of all transactions, and an uptick in activity above $5 million.”
The average Hamptons sales price in the luxury market grew 24.7 percent from last quarter to $8,538,746 and the median sales price also increased by 13.6 percent to $6,250,000. The number of sales (52) was down 8.8 percent and days on the market significantly dropped from 336 to 186 – a 44.6 percent decrease.
The North Fork saw the highest third quarter sales in over a decade, and a decrease in inventory didn’t deter buyers. After nine quarters of growth, the median sales price fell 0.2 percent to $515,000. The listing inventory dropped a dramatic 23.4 percent to 472, but the number of sales increased by 19.9 percent to 199 and houses were on the market for a shorter time period – from 157 days in the second quarter to 118 days in the third quarter.