This article published in the New York Times discusses the revamped demand and increasing pricing of homes in the Hamptons. The author discusses the opportunities that real estate companies are facing in this area. Although home buyers/ renters are not as quick to jump on deals they are still wiling to shell out a large sum of money for their summer homes. Also, there are options available for those who are not multimillionaires and billionaires. In my opinion, I feel like this spending on summer homes is a good indicator that the wealthy are ready to come out of their cautious spending that the recession has laid on them.
http://www.nytimes.com/2013/03/24/realestate/another-pricey-summer-season-in-the-hamptons.html?_r=0&adxnnl=1&pagewanted=all&adxnnlx=1364255032-zyZHZfSwTh2gCgeYZFXarQ
3 comments:
These statistics may serve as a leading indicator of a positive economic future. I wonder if the comparable properties in nearby locations that were devastated by Hurricane Sandy provide the wealthy with fewer housing purchase options, leading to an increase in the Hamptons housing market specifically. Another interesting message from this article was the description that people are less likely to flaunt their riches in the post-recession world. Perhaps this principle also applies to displays of wealth in other sectors of the economy?
It makes sense that the "choiciest" properties will rebound in price most quickly. New housing starts and housing prices across the country are beginning a rebound and it makes sense that this rebound will be led by the country's best prices as arbitragers will scoop such properties up as soon as they become undervalued. As the supply of these diminishes this demand should flow into less desirable properties and so on.
Steven A. Cohen, the hedge fund manager and head of SAC Advisors, just purchased a home for $60 million on the most expensive block in the Hamptons. This comes after he purchased a Picasso painting for $155 million.
The Hamptons has always been a hot spot for Wall Street executives and celebrities. Jerry Seinfeld, Martha Stewart, and Alec Baldwin own homes in the Hamptons.
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