Market Report and Trends For Southampton

Southampton, a village in New York, is known for its luxurious homes and high-end real estate market. With 4,587 residents and 1,660 houses or apartments, the median cost of homes in Southampton stands at $2,021,833. This places Southampton's real estate among the most expensive in New York and the United States. The area predominantly features large, single-family homes, with a significant proportion of houses boasting four or more bedrooms. This architectural style is more prevalent in Southampton than in 98% of other American communities​​.

Most homes in Southampton are owner-occupied, with three and four-bedroom dwellings being the most common. These properties, primarily single-family detached homes, account for 78.42% of Southampton's housing. A notable aspect of Southampton's housing market is its seasonal occupancy. Many homes and condos are occupied only for part of the year, typically for vacation purposes, reflecting Southampton's popularity as a holiday destination​​.

The real estate market in Southampton has witnessed significant trends and changes. As of January 2024, there's been a 25.0% increase in property listings and a 300.0% increase in new listings compared to the previous month. The average asking price for new listings is around $1,711,250, marking a $41,250 increase. However, the average asking price per square foot has slightly decreased by $10. The average days on the market have increased to 68 days, indicating a slower pace in property turnover​​.

Southampton has seen robust appreciation rates over the past decade. The cumulative appreciation rate over ten years has been 85.16%, ranking in the top 40% nationwide. This translates to an annual average house appreciation rate of 6.35%. In the latest twelve months, Southampton's appreciation rates have been among the highest in America at 6.78%, higher than 74.70% of other cities and towns in the nation. This trend indicates that short-term real estate investors have found significant opportunities in Southampton​​.

Looking ahead, the Southampton real estate market is expected to continue its upward trajectory. As part of the larger New York market, Southampton is likely to experience trends similar to the state's overall real estate climate. The median home price in New York was $492,400 as of September 2023, and despite a national downturn, New York’s market, including Southampton, has continued to appreciate in value. This ongoing appreciation trend suggests a promising future for Southampton real estate investments​​​​​​.

Predictions for 2024 indicate that home sellers, who may have been hesitant in previous years, will return to the market. Mortgage interest rates are expected to stabilize in the second half of the year, encouraging more buyers to enter the market. Consequently, home prices are anticipated to continue rising, driven by the low supply-high demand dynamic. New home constructions are also expected to increase, adding more options to the market. Despite these positive trends, New York’s housing market is unlikely to crash in the near future​​​​.

Southampton Village, known for its grand mansions and Gilded Age estates, epitomizes luxury. Its residents include founding families and captains of industry. The area is characterized by a luxury beach community lifestyle with an emphasis on simplicity and style. Traditional shingle-style architecture dominates, reflecting its historical roots in American aristocracy. Southampton Village is also a hub for art exhibits, cultural events, and dynamic nightlife, offering a prosperous and leisurely lifestyle to its residents and visitors​​​​​​.

Southampton's real estate market is also shaped by broader economic factors. The area benefits from a relatively low cost of living compared to other U.S. cities, with median rent for a two-bedroom property at $2,360. The local economy is marked by an unemployment rate of 6.1%, slightly higher than the U.S. average. Future job growth over the next ten years is predicted to be 26.8%, albeit lower than the national average. The income tax rate for Southampton is 6.5%, compared to the U.S. average of 4.6%. These economic factors, combined with the area's affluence and desirable location, contribute significantly to the dynamics of Southampton's real estate market​​.

In conclusion, Southampton real estate offers a unique combination of luxury, appreciation potential, and investment opportunities. Whether you are looking to invest in a vacation home or seeking a permanent residence in one of New York's most affluent areas, understanding the market dynamics and trends is crucial. For expert guidance in navigating this complex and dynamic market, consider reaching out to Margot Reutter, an experienced real estate professional in Southampton. Contact Margot for more insights and assistance in making your Southampton real estate investment a success!

_{*Header image courtesy of Margot Reutter}