Latest news with #WilliamRaveisRealEstate
NBC News
3 days ago
- Business
- NBC News
Summer rentals in the Hamptons are down 30%
Summer rentals in the Hamptons are off to a chilly start to the season, as unrented homes start to pile up and sales slow, according to brokers. Hamptons rentals are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals say their rental business is down between 50% and 75%. 'People are holding on to their money,' said Enzo Morabito, head of the Hamptons-based Enzo Morabito Team at Douglas Elliman. 'They don't like uncertainty.' Of course, Hamptons renters often wait until the last minute to book July and August rentals. Brokers say this year may be starting even later due to cold, rainy weather in May. Some renters may also be holding out for better deals in a Hamptons market that has become far more expensive after Covid. Yet brokers and renters say privately that the volatility in the stock market and economic uncertainty sparked by the ever-changing tariff landscape has made some affluent renters and even some buyers hold off on a pricey Hamptons vacation this summer. After the post-election euphoria in markets at the end of last year, brokers saw a surge in interest from potential renters in January and February. But as spring arrived, along with the April tariff announcements, the early interest didn't translate into rentals. Morabito said he represents several homeowners with large waterfront and luxury properties that typically would have been rented by March or April. Today, they're still available. He said some homeowners who rent out three or four homes in the Hamptons during the summer may start to question their investments after this summer if renters don't start emerging. On the plus side, the rise in unrented inventory means potential bargains and choice for renters. Brokers say some listings have started lowering their prices by 10% to 20% in hopes of saving the summer. Some homeowners are adding more flexibility, allowing for shorter one- or two weeks stays in hopes of getting renters. Gary DePersia of My Hampton Homes said the best houses in the Hamptons typically get rented early in the year. 'But this year I have great rentals available in every town, from Southampton to Montauk.' While tariffs and economic uncertainty may play a role in the slump, he said renters seem to have been waiting longer and longer every year, perhaps holding out for better deals. Eventually, he said, they end up renting. 'I think a number of people have deferred decisions, or they weren't sure what [they were] going to do, go to Europe or the West Coast,' he said. 'They will realize they want to be in the Hamptons; they have lot of friends and colleagues here and then they start scurrying around for rentals.' Desiderio said the combination of weather and grim economic headlines made for a slow start that will quickly reverse. 'I believe this year there was so much 'dark noise' out there financially, and geopolitically, and the weather was not conducive to thinking of summertime,' she said. 'There's no doubt that by the time July 1 is upon us, all of the rentals will be taken this year.' When it comes to home sales, the Hamptons real estate market remains fairly strong, despite relatively low inventory. Sales in the first quarter were down 12% from a year ago, although the median sales price jumped 13% to a record $2 million. Brokers say when a quality home in the Hamptons is priced right, it sells immediately. They add that the surge in high-end sales in Manhattan over the past two months could also lift the Hamptons market. 'I just had two Canadians put a bid on an $18 million house, sight unseen' Morabito said. 'When Manhattan comes alive, we always follow.' This 11,000 square-foot home in Bridgehampton in the Hamptons has slashed its rental price from $450,000 to $375,000 for August through Labor Courtesy of Corcoran.
CNBC
3 days ago
- Business
- CNBC
Summer rentals in the Hamptons are down 30%
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. Summer rentals in the Hamptons are off to a chilly start to the season, as unrented homes start to pile up and sales slow, according to brokers. Hamptons rentals are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals say their rental business is down between 50% and 75%. "People are holding on to their money," said Enzo Morabito, head of the Hamptons-based Enzo Morabito Team at Douglas Elliman. "They don't like uncertainty." Of course, Hamptons renters often wait until the last minute to book July and August rentals. Brokers say this year may be starting even later due to cold, rainy weather in May. Some renters may also be holding out for better deals in a Hamptons market that has become far more expensive after Covid. Yet brokers and renters say privately that the volatility in the stock market and economic uncertainty sparked by the ever-changing tariff landscape has made some affluent renters and even some buyers hold off on a pricey Hamptons vacation this summer. After the post-election euphoria in markets at the end of last year, brokers saw a surge in interest from potential renters in January and February. But as spring arrived, along with the April tariff announcements, the early interest didn't translate into rentals. Morabito said he represents several homeowners with large waterfront and luxury properties that typically would have been rented by March or April. Today, they're still available. He said some homeowners who rent out three or four homes in the Hamptons during the summer may start to question their investments after this summer if renters don't start emerging. On the plus side, the rise in unrented inventory means potential bargains and choice for renters. Brokers say some listings have started lowering their prices by 10% to 20% in hopes of saving the summer. Some homeowners are adding more flexibility, allowing for shorter one- or two weeks stays in hopes of getting renters. Gary DePersia of My Hampton Homes said the best houses in the Hamptons typically get rented early in the year. "But this year I have great rentals available in every town, from Southampton to Montauk." While tariffs and economic uncertainty may play a role in the slump, he said renters seem to have been waiting longer and longer every year, perhaps holding out for better deals. Eventually, he said, they end up renting. "I think a number of people have deferred decisions, or they weren't sure what [they were] going to do, go to Europe or the West Coast," he said. "They will realize they want to be in the Hamptons; they have lot of friends and colleagues here and then they start scurrying around for rentals." Desiderio said the combination of weather and grim economic headlines made for a slow start that will quickly reverse. "I believe this year there was so much 'dark noise' out there financially, and geopolitically, and the weather was not conducive to thinking of summertime," she said. "There's no doubt that by the time July 1 is upon us, all of the rentals will be taken this year." When it comes to home sales, the Hamptons real estate market remains fairly strong, despite relatively low inventory. Sales in the first quarter were down 12% from a year ago, although the median sales price jumped 13% to a record $2 million. Brokers say when a quality home in the Hamptons is priced right, it sells immediately. They add that the surge in high-end sales in Manhattan over the past two months could also lift the Hamptons market. "I just had two Canadians put a bid on an $18 million house, sight unseen" Morabito said. "When Manhattan comes alive, we always follow."
Yahoo
21-04-2025
- Business
- Yahoo
Navigating CT spring home sale market this year. What sellers and buyers need to know.
The spring homebuying season — traditionally the busiest of the year — hasn't made much of an appearance in Connecticut for five years, after a pandemic buying frenzy depleted the stockpile of houses for sale, so much so that it hasn't built back up. Few houses on the market are still frustrating both potential buyers and sellers. Buyers have little choice and still encounter stiff competition, with multiple bids. Many would-be sellers worry they won't be able to find another place to live, so they sit on the sidelines. But this year, a spring market of sorts could start taking shape in May and June, with an uptick in inventory. 'Everybody's expecting increases in inventory to start after Easter,' said Paula Fahy Ostop, team leader at Marshall + Ostop at William Raveis Real Estate in West Hartford. 'People weren't quote, unquote, waiting for spring. It just happens to be that's when things are going to start to pop.' Buying and selling in this year's spring market isn't expected to reach what was typical before Covid, or come anywhere near the hot market during the pandemic. During the pandemic, there was a rush by buyers retreating from more urban locations and those that wanted larger houses to comfortably accommodate working at home. If more houses do come on the market, a wider selection would be welcome news for buyers who are still searching with limited options despite higher mortgage rates and home listing prices. This year could be more robust because potential sellers who either want to move to a bigger house or downsize are becoming more accustomed to the reality of higher mortgage rates, according to Ted Rossman, a senior industry analyst at Bankrate, which tracks housing, mortgages and other financial trends. Their current mortgages may be as low as 3% and they now may be facing one that is more than double, at nearly 7% for a 30-year, fixed-rate mortgage. But those property owners also may have an ace in their back pockets: the increase in their home's worth since 2020 may allow them to comfortably take out a smaller mortgage on a new purchase, Rossman said. 'We are kind of adjusting to the reality of rates in the high 6s,' Rossman said. 'Some of the memories of when rates were 3% is fading. It's just not realistic right now.' Heading into May, the single-family home sale market in Connecticut — and in Hartford County — remains extremely tight. Both the state and Hartford County are both experiencing less than a 2-month backlog — or inventory — of houses for sale as of the end of March, according to the most recent statistics from SmartMLS, the statewide multiple listing service. A home sale market is considered to be in balance when there is a six-month supply of houses for sale, meaning neither buyers nor sellers have the upper hand. So, while homeowners may have the advantage, they also are competing with other buyers if they want to sell and make another purchase. Sale prices for single-family houses in Hartford Country again marched upward in the first three months of this year, on fewer sales, compared with the same period a year ago. That demonstrates there is strong competition for the houses that do come on the market. The median sale price — where half the sales are above, half below — was $359,900, up nearly 6%, compared with $339,900 for the first three months of 2024, according the SmartMLS. Houses generally were still selling at above the asking price, with 103.3% of the list price reflected in the closing price for the three months of 2025, SmartMLS found. That means if a house, for example, were priced at $100,000, it would close at $103,300. This indicator of buyer willingness to pay over asking price did slip — but only slightly from 103.8% for the same period a year ago. 'They're not as trigger happy, right?' Michael Barbaro, a real estate broker and president of SmartMLS, said. 'They recognize that they are paying a higher interest rate, so they are taking their time a little bit more, but they are still out there out there, and they are still in the market.' Soaring prices and higher interest rates are sideling some first-time homebuyers, however. But earlier this month, the State Bond Commission approved $35 million for another round of the Connecticut Housing Finance Authority's 'Time to Own' program. The program provides forgivable loans for down payments and closing costs to qualified applicants to smooth the path to homeownership. Borrowers must meet certain requirements, including income limits. The meteoric rise in home values across Connecticut since the pandemic has raised the issue whether the state is headed for another 'housing bubble.' In the early 1990s, home values plummeted following an overheated market in the mid-to-late 1980s. Experts say they doubt that will be the case this time. For two decades, there wasn't any substantial gain in home values — when adjusted for inflation — until the onset of the pandemic buying frenzy, 'There was no appreciation at all in Connecticut house prices,' said Jeffrey P. Cohen, a professor of real estate and finance at the University of Connecticut School of Business in Storrs. 'So, we're making up for what we didn't see over the last 20 or 30 years. This is not a bubble. We're catching up to where we should be.' Here are some factors to consider before entering the home sale market this spring: ♦Figure out where you will go. Raveis' Ostop said this may be the most important consideration for sellers in a tight home sale market. 'They know their home is going to sell. You have to have a general idea of where you are going or where you want to go.' Take a close look at your current stage in life. Does it make sense to move to a larger home or downsize? Or do you wait to list until you've found just the right house? ♦Weigh the return on improvements in the sale price. 'I wouldn't rush to spiff up the kitchen or bathroom, if you're going to sell in the next few months because you're probably not going to fully recoup the investment,' Bankrate's Rossman said. But items like a leaky roof or ailing heating system — often more expensive repairs to make — could be worth considering. Those deficiencies could turn off buyers or in the case of an old roof, make it more difficult for buyers to obtain homeowner insurance. 'Or otherwise you're going to have to bend on the price and give some sort of adjustment,' Rossman said. ♦Consider a pre-listing home inspection. Ostop said an inspection prior to listing can turn up problems even in the most well-maintained homes. These can be repaired prior to listing, so there are no surprises when a prospective buyer makes an offer. Offers can include what are known as 'contingencies' which are items that a prospective buyer wants addressed as part of the purchase. One caution: a pre-listing inspection obligates the seller to disclose or repair deficiencies. ♦Resist the urge to overprice your listing. A potential seller may look around and see rising prices and want to pump up the list price, according to Kurt Potter, a real estate broker at RE/MAX Right Choice Real Estate in Glastonbury. 'Well, seven days on the market right now is like, what 30 used to be,' Potter said. 'So if you're overpriced from the get go and you slow that process down, you're really shooting yourself in the foot.' Potter said. If there is a house, for example, that an owner thinks may be worth $350,000 or might sell for that in a bidding war, there isn't a problem listing it for $329,900. 'The market is going to take you there,' Potter said. ♦Show a clean house. 'I mean, we are talking like, opening up every window, are the windows clean inside and out? — really making it sparkle,' Ostop said. 'If there is only one thing a seller can do to prepare a house, that's what you do. Because a clean home shows that it's been cared for, that someone is paying attention.' Ostop said cleaning also eliminates any odors. 'You live in a home. You don't even notice odors that someone else is going to notice,' Ostop said. ♦Evaluate the full cost of owning a home. Bankrate's Rossman said it is critical to look beyond mortgage principal and interest payments. Homeowner insurance rates have been rising rapidly in recent years. According to the online insurance marketplace, the average homeowner insurance premium in Connecticut will rise 5% in 2025 to $2,724, up from $2,600 in 2024. That comes on top of an average 9% increase in 2024. Another crucial factor is local real estate property taxes. The Courant recently reported that while most Connecticut communities are proposing modest tax increases of 1 to 4% and a few planning no changes at all, several were warning of heftier hikes, one nearly 20%. It also is important to know when the next property revaluation is due. 'People don't always think about that, especially if you're a first-time homebuyer. I'd also include utilities and repairs,' Rossman said. ♦Consider a property that may have been overlooked. 'You have to look at the properties that might have been on the market a little while,' Re/Max's Potter said. 'Was it just that the seller was being piggish on their initial asking price and now, it's been on market for a few weeks, or a month or more?' Buyers who lose out time after time in bidding wars and are discouraged 'may have to kind of look for that diamond in the rough,' Potter said. ♦Interview agents. Ostop said it is crucial to hire an agent that does the job full-time, experienced and understands the market where the buyer wants to find a home. 'Don't be afraid to ask questions: What is your process? How do you negotiate?' Ostop said. Understand the commission structure and what percentage agreed upon covers — the buyer, seller or both, experts said. ♦Get fully-underwritten mortgage pre-approval. In a fast-paced home sale market, buyers prepared with a pre-approval — or proof that they have liquid funds to make a cash offer — is essential in making what sellers would deem a credible offer, agents said. ♦Follow the axiom 'Marry the house, date the rate?' In this approach, buyers agree to pay a higher mortgage rate and then look to refinance in a couple of years. 'There is some truth to that. But I wouldn't put all my eggs in that basket, just because what if rates don't come down like we think?' Rossman said it is better to take a long-term view focused on neighborhood, schools and a plan to stay in the house 7, 10 or more years. 'Even if it is not the best time to buy, it might work out for you if some of those other boxes are checked and you have a cushion for maintenance, repairs and utilities.' Reporting by Courant Staff Writer Don Stacom is included. Kenneth R. Gosselin can be reached at kgosselin@
