Paula Hathaway, LBA, The Hamptons, E. L. I. NY

I have never been so busy! Rentals have opened up and buyers are coming out of hibernation!!!

This market here in the Hamptons has been shut down for literally 4 months: December, January, February, March....they have been totally dead. Now with the sun shining and the weather reminding everybody what is to come---We are having a very busy month.

There are upwards of $100Million in fully executed contracts in the works---Prices range from just under $1 Million to just over $10Million, a well balanced, early return to normalcy! These deals will close in the next 3 months and then maybe the media will pick up on it.

These properties are located in The Hamptons, Eastern Long island and East of the Shinnecock Canal. For those who don't know, the canal is the general demarcation for the Hamptons as a collective; it does not include Westhampton which has it's own "plus" of being located closer to New York City. Nor does it include Hampton Bays which is between Westhampton and Southampton. These 2 areas have their own identity for those who do not want to drive the 2 hours to get to the Eastern End of Long Island.

Nothing is more gratifying than to now be able to sell in a more "normal" market, where work is hard but the deal gets done and everybody is happy--no one feels ripped off or cheated as used to happen in the market where escalating prices forced people to do things they ordinarily would not do.

So, now I can say with certainty, that the Spring market has arrived and it is good!!!

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!!!

"DON'T BE LEFT OUT!!!"

"GET THE BIGGEST RETURNS OF YOUR LIFE"

"EARN 10% RETURN ON YOUR $$$---THE ONLY PLACE IN THE WORLD WHERE YOU CAN !!!!"

"COME AND GET IT!!!"

It was Christmas Eve and I was thinking about my ex (his name is Alan); thinking that I hadn't spoken to him in over a year and I wanted to call just to wish him Happy Holidays.....

What I found out on that phone call gave me chills and also made me so angry at Bernie Maydoff for ruining so many lives.

Not only did Alan have money invested with Bernie, but our mutual friends from all over the city (Manhattan) have been hit so hard that they will never recover!!!

Fortunately for Alan, a wise and conservative investor, he was careful not to fall victim to Maydoff's greed; he has never put a lot of money in any one place and he is very well diversified....but our friends! They have been harmed so badly that in one case, every last penny is gone.

"I play golf with him at the Atlantic Golf Course" Alan said as he was expounding on the outrage of who Bernies biggest victims were. "He was one of my good friends, I thought!"

"We all knew him; had lunch with him, played tennis and golf with him...I guess we didn't really know him, but we were thinking he was a friend! People trusted him...completely!!! I knew him for 20 years!!!

BERNIE....WE HARDLY KNEW YE!

So, here is an outline of my friends who have taken a hit from this man in an empty suit:

• My former neighbor and his wife are wiped out completely, losing hundreds of thousands of dollars in their life savings. Both are now retired----guess what? They both have to get jobs.
• A very close friend of mine who sells commercial real estate in New York City, put every penny she earned with Bernie. Her husband has his own struggling business and now these people, nearing retirement, will not be able to do that.
• One of my associates had her money completely invested with Bernie---every last dollar is gone.
• I can count 6 of my friends and aquaintances who have lost huge amounts of money to Bernie Maydoff.

Story after story is unfolding; people who are embarrassed about their lack of due diligence before putting all their money with this man have just begun to come forward to their friends. And as they talk, they find out almost all of their mutual acquaintances have lost all their money.

These are not the incredibly wealthy that you hear about on the news or in the business press; no these are people like many of us. Hard working people who have saved over the years so that they may now retire; they will not retire soon.

I am only one person---how many other people out there know someone who has lost money to this shady character?

This is the Hamptons, after all. We are the playground for the rich and famous. We are at the effect of Wall Street bonuses, Wall Street moguls and Wall Street Hoodlums...This is just another of many exploitations we have been privileged to endure.....we will survive this one as well!

IT MAY NOT SEEM to be that jam-packed, but to the local people here in the Hamptons it is "bursting at the seams!"

Most people from new York City are here for their vacations; no more trips to Europe, at least for those who take vacations in August. Because of the cost of air travel and the exchange rate of the dollar, most savvy travelers are coming to the most beautiful beaches in the world...right here in their own back yard!

I can't wait to see the reports at the end of this record season; just how many people rented houses this year vs last? What were the restaurants doing with the excess crowds lined up at the door on Saturday evenings? How did the local merchants fare this year over last? I don't hear any complaints from the store owners this year!

I know one thing: there are several new dinner clubs here in Southampton Village and they are jammed on Friday and Saturday nights! Take Nello for instance; if you want a martini at this very popular night club, you have to pay $30! The crowd is young and not so young, famous and not so famous, European and worldly...the music is out of this world.

Looks like a record year for all the folks here on the East End---Even the real estate business is happening! I just got three new customers--investors, looking for a $1 Million or under for their investment portfolios. They are thinking of buying, fixing up, holding and renting while they hold. Not such a bad idea; especially since the prices have come down from the moon and the stars and you can now get a really good buy here in the Hamptons!!!

Well, the Hamptons made the news today--big time....The New York Observer reported in their " Stat for the Day" REALESTATE column, the official 1Q 08 sales figures for The Hamptons and The North Fork of Long Island, NY.

Miller Samuel, an independent residential real estate appraisal and consulting agency, released their analysis for the first quarter of 2008, and it was quite something:

1st QUARTER 08 HAMPTONS/NORTH FORK MARKET OVERVIEW

The most striking characteristics are the rise in price indicators within the top 20% and the decline in overall number of sales. The market has changed from one of price growth equally distributed across most segments of the market just a few years ago to PRICE GROWTH CONCENTRATED AT THE HIGH-END. The lower level of sales activity is largely attributable to the declining national economic climate, tighter credit and a weaker employment picture in New York City financial services sector.

= Average Sales Price

= $1,728,610

*Up 16.2% over prior quarter

*Up 16.8% over prior year quarter

= Median Sales Price

= $790,000

*Down 1.3% from prior quarter

*Up 1.9% over prior year quarter

= Number Of Sales

= 400 units

*Down 34.7% from prior quarter

*Down 41.4% from prior year quarter

= Days On Market

= 184 Days

*Up 10.6%over prior quarter

* Up 32.5% over prior year quarter

= Listing inventory

= 1,848 Units

* Up 5.8% over prior quarter

* Up 25.5% over prior year quarter

So, even with the drop in unit sales for the East End and the North Fork, a modest gain was seen in both the median and the average price indicators for 1st Quarter, year over year. The average sales price was $1,728,610 this quarter, up 16.8% above the prior year quarter, the second highest quarterly average sales price after the third quarter of 2007, which had an average sales price of $1,805,104.