In the collection of affluent towns and villages on eastern Long Island known as the Hamptons, home prices are dropping, reports Forbes contributor Troy McMullen.
In the third quarter, the median home price fell 13% compared to the same period in 2015, according to a report prepared by appraiser Miller Samuell and published by real estate firm Douglass Elliman. That is the steepest drop in nearly three years.
Now, the median price of a Hamptons home stands at $825,000, according to the report.
The drop in home prices is particularly acute at the upper end of the market, the report shows. Sales of homes priced at $1m to $5m fell 24% in the third quarter compared to the same year-ago period.
The news is better for bargain hunters in the Hamptons. Homes priced below $1m saw a rise of 22% from a year earlier. The spike reflects buyer enthusiasm for homes priced at the middle and lower end of the Hamptons real estate market, says Jonathan Miller, president of Miller Samuel.