HAMPTONS REAL ESTATE IS WHERE IT'S AT....

In 1997, I bought a house that is located in the heart of Southampton Village on one of the streets that dead-ends at an ocean beach. I don't mind telling you that I paid $425K for that house and it is just .6 of a mile to the ocean; in fact you can see the ocean waves at the end of the road from my driveway.

That house today would sell in the low $2Mil range with no problem, if it were listed to sell. That is a lot less than it would have sold for just 8 months ago---then it would have sold for just under $3Mil.

A neighbor, 1/2 block away from my house and closer to the ocean, just bought a house behind his, on a flag lot and paid $4.2Mil for it---it is the same size property as mine and the house is smaller than mine! But because he is buying the property behind his and therefore adding to his property size and privacy, he paid a premium for it.

What does this ultimately mean to the market here in the Hamptons? Not a thing except that people do still have money, they will still spend it on very special properties and they will even over-spend if they need to in order to get the rare and special piece of Southampton Village.

Now, this may not apply to all villages in the Hamptons; but it does apply to the very desirable Village of Southampton.

I look at this as an anomalie, or an indication of the real state of the market....people will spend money on real estate but they have to have a very good reason to buy it!!!