After a tumultuous couple of years in real estate, real estate agents say they’re ready to turn the corner in 2025 and hit the reset button. With the COVID-19 pandemic in “the rearview mirror” as well as the uncertainties that often accompany a presidential election year, Judi A. Desiderio, chief executive officer at Town & Country Real Estate, says 2025 should be a vast improvement over the past two years.
“The last two years were back-to-back bad years — we normally don’t have that, and it was across the whole country on a grand scale,” she says. But monitoring the numbers and markets in the last quarter of 2024, she says she saw increases in open house attendance, appointments and deals.
“2025 will be completely different than 2024 and 2023. I see all the trends moving up,” Desidero says, adding, “We found the demand for the ultra-high end soared.” But, as realtor.com reported last week, those sales of trophy homes, overall, were down, and part of that is due to a shortage of inventory with wealthy owners holding onto their homes either because of lifestyle or as a multi-generational investment.
With that shortfall and because “there’s almost no vacant land left,” Desiderio says “people are renovating or removing and rebuilding” and those projects are highly customized to the homeowners’ lifestyle.
She says she thinks building footprints will be smaller to accommodate an increase in on-site amenities such as pickleball courts and other game spaces, and conversational fire pits. Of ongoing importance is the seamless indoor/outdoor lifestyle where the covered patio is an extension of the living room and the outdoor kitchen an extension of the chef’s kitchen.
Christopher Nuzzi, executive vice president, regional director of Advantage Title Group Agency, which serves across Long Island, agrees.
“Outdoor living still maintains a lot of desirability,” he says. “One thing we hear constantly is turnkey — new construction still seems to be hot and selling quickly and mixing inside and outside living is a trend that is ongoing.”
Nuzzi said the East End maintains its popularity for its proximity to water, access to vineyards, marinas, restaurants — and then some. “It’s always been desirable, but now is even more enhanced over the years. I think we’re positioned really well for a 2025.”
In its third-quarter report for 2024, Corcoran noted that though in its portfolio of 389 single-family home sales, trades were down 21%, sales prices were on an upswing: $3.201M on average and $2.157M, for the median, respective increases of 13% and 17% year over year. The most sales were reported in East Hampton, where 76 single-family homes sold, with an average price of $3.029M. Amagansett had the least number of sales—eight, with an average price of $5.936M. Bridgehampton/Sagaponack showed the highest average sales price of $9.503M for the 13 single-family home sales recorded in Q3. In the luxury market, defined as the top 10% of all residential sales by price for the reported quarter, median and average sale price rose 11% and 1% year over year, respectively.
In its 3Q report, Brown Harris noted the continuance of the Hamptons real estate market as “one of high demand amid a relatively constrained inventory,” signaling a rebound of the market after several consecutive quarters of slower activity in 2023 and early 2024. The average sales price during 3Q24 for its portfolio of 409 sales was $2,699,350, a 1.7% decrease from 3Q23, but still the third-highest 3Q average sold price to date. The Shinnecock Canal is the great divide: The average closing price east of the Canal was $3.42M and the median was $2.2M (sales in the $1 – 2M range represented the largest category), while west, the average was $1.6M and the median dipped below $1M to $950K. West of the canal, 46% of sales were in the $500K to $1M range. For the first time, the agency reports, the Westhampton area enjoyed both the highest number of sales — 163, or 39.9% of the total in the #Q portfolio — and the highest total dollar volume ($263M) compared to the other areas in the Hamptons.
Elliman’s report of 393 homes closed in 3Q 2024 was up 36% from 3Q 2023, but down 13% from the previous quarter in 2024. Average sales year to date for the 1,072 homes sold was $2,965M, a nearly 21% increase from the same quarter in 2023. In the single family and condo category combined, Elliman reports the most sales (68) in East Hampton, with a median price of $1.87M. The best deals were to be found in Hampton Bays and East Quogue, where median prices were $850,000 and $897,500 respectively. The luxe markets were Sagaponack and Water Mill, where respectively, nine homes had a median sales price of $8.5M and eight homes had a median price of $4,647,500. Wainscott was the outlier with one home sold at the median price of $9,350,000
Cheers to a rebound and an upswing, particularly with smaller markets coming online. Here’s what agents are saying about 2025.
“In 2024, the Hamptons real estate market saw steady demand despite high interest rates, with luxury properties remaining in high demand and inventory staying tight. Looking ahead, 2025 promises a hot market, driven by strong buyer interest and a strong economy…with trends toward multigenerational homes — early planning will be key for success.”
—Jennifer McLauchlen, James R. McLauchlen Real Estate, Inc.
“2024 had some real challenges in the real estate market as buyers stood on the sidelines waiting for more inventory that was well priced. 2025 should start strong with the promise of lower, or at least stable, interest rates, more fresh inventory, and hopefully sellers who are pricing correctly to sell. I am optimistic.”
—Bonita DeWolf, Christie’s Real Estate Group, East Hampton
“Although interest rate fluctuations and the cost of building and renovating due to inflation make a bigger impact on the lower end (below $2.5M!), the Hamptons offers the premier destination for affluent buyers offering long term investment stability.
—Martha Gundersen, Douglas EIliman
