The Covid-19 pandemic has pushed real estate sales activity and prices to new records in New York’s Hamptons, North Fork and Long Island regions.
The median sales price of a Hamptons home spiked 40% year-over-year in the third quarter, according to a report Thursday from Douglas Elliman. That price, $1.2 million, is the highest in 15 years, since the company began tracking prices in the region.
Sales also were up more than 50% in the third quarter, compared to the same time last year, the data showed. That’s the largest year-over-year sales increase in nearly seven years.
Sales also were up 40.2% compared to the second quarter, the report found.
“Sales surged quarter over quarter, rebounding quickly from the restraint of spring market activity at the onset of the Covid crisis,” according to Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the Douglas Elliman reports.
Sales of luxury homes, defined as the top 10% of the market, were up 38.6% in the third quarter compared to the second, Elliman found. Year-over-year, sales were up 48.8%.
Luxury prices dipped 9.7% to $5.8 million from the second-quarter number of $6.4 million, the report showed. But year-over-year, prices rose 65.7%.
The North Fork has also seen increased demand in the third quarter because of concerns over Covid-19, according to Elliman.
In that part of Long Island, the number of sales was up 71% quarter-over-quarter and 41.3% year-over-year, according to the report. In addition, the median sales price rose 18.1% to $702,500 in the third quarter, compared to the previous quarter, the highest level in more than 14 years of tracking.
Luxury sales in the North Fork rose 71.4% in the third quarter, from 14 in the second quarter to 24 in the third. The median sales price for high-end homes was $1.97 million, a 29.3% year-over-year rise, Elliman found.
At the same time, the total volume of sales in both areas was up 101.5% in the third quarter, compared to the same time the previous year, according to the third-quarter report for the Hamptons and North Fork from Brown Harris Stevens.
Sales for the third quarter amounted to more than $973 million, compared to $483 million in the same quarter of 2019, according to the report, also released Thursday.
“The easing of restrictions at the end of [the second quarter] had a dramatic impact on Q3 2020, and the market embraced a frenetic pace, resulting in a doubling of the dollar volume of Q3 2019,” Philip V. O’Connell, managing director of Brown Harris Stevens in the Hamptons, said in the report. “The end of Q3 2020 has settled into a strong market, which we expect to continue throughout the year.”
Sales on Long Island, overall, also surged in the third quarter, according to Elliman.
The number of closed sales was up 56.9% quarter-over-quarter, with the median sales prices up 6.6% to $500,000, the report showed.
On the luxury side, sales increased 56%, from 459 in the second quarter to 716 in the third, Elliman found. The median sales price jumped 12.3% to $1.24 million in the third quarter, compared to $1.1 million the previous quarter.