Foureyes, Home Buyer in Brooklyn, NY

South Fork home prices def seem like they are dropping -- but why aren't

Asked by Foureyes, Brooklyn, NY Sat Mar 15, 2008

North Fork homes dropping as much?

My recent NYT Real estate alerts -- the home prices are def closer

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The North Fork is a different local market than the South Fork. The purchasers of homes set the market values in any area. The homeowners on the North Fork know what the market values are for similar homes and the correctly priced offerings have sold to purchasers who realize that value is worth their investment. It is the stability of the home purchasers over the years that has created such a stable real estate market on the North Fork. The area did not have an unrealistic run up in selling prices over the past years to the point the new purchasers to the market can not justify the purchase price. The area also has attracted financially stable home buyers historically. The low selection of foreclosures has reinforced the stability of home sales and has not created sliding home sale prices because of poor purchase decisions when the market was strong.
1 vote Thank Flag Link Tue Nov 24, 2009
You really need to look at the current market conditions as of August 18,2009.Most of these responses are over a year old.There are properties selling in all price ranges right now.

Yes,the inventory is high,but there are buyers looking,and making offers,which are leading to closings.Personally,I am experiencing my best year since I am licensed as a Realtor.Just closed on a Gin Lane property at the end of July,and I had a back-up deal on the table for another buyer who really wanted the same property.When you work smarter and harder,deals happen.Within the last month,buyers are finally coming out in huge numbers,and they are making offers that are being accepted.

Homes that are priced correctly are selling,the unrealistic sellers need to realize that it is 2009,not 2004,they must be willing to negotiate.The internet activity is the highest it has ever been,plus buyers are actually coming to the Hampton's from behind their computers.You need to keep your eye on the ball ! It's bouncing in our direction, every single day....
1 vote Thank Flag Link Tue Aug 18, 2009
We just posted a market update for March sales on the North Fork on our website (below)- it indicates that homes priced under 600k are seeing activity, while those in the upper end have not had the same success (in March). While expected, it was still surprising- the inventory in the upper end seems to be more stagnant, yet lower ranges are getting activity. I thought that I'd see more in the million plus range (as opposed to zero) under contract for March, but perhaps the Bear Stearns issue (among many others) is creating a wait-and-see from the upper end (at least, on the North Fork for March).
Web Reference:
1 vote Thank Flag Link Tue Mar 18, 2008
Patience... My guess ith the pending substnatial inflow of REO and bank owned properties projected for the first quarter of 2011 that we will see prices fall...
0 votes Thank Flag Link Tue Nov 23, 2010
Hi Joan, great question!

It is my experience that (even the serious) media have exaggerated the price drop in the Hamptons - as mentioned in the WSJ (Rick Hoffman, Corcoran) & other publications and based their assumptions of a drastic drop on ASKING prices much more than actual properly compared transaction prices.

People were asking ridiculous amounts for their properties that never sold, than reduced their prices to real levels and got activity. Looked like an enormous drop popularly, but really, when we look at actual transactions, we can see fewer transactions, certainly, but prices are holding much better when looked at this way, the proper way, by comparing actual transaction int he past with real transactions today.

As usual, the news about Hamptons RE and rich and famous people's demise are greatly exaggerated...!
0 votes Thank Flag Link Tue Aug 18, 2009
Come to the North Fork for more realistic prices!
0 votes Thank Flag Link Wed Oct 8, 2008
"High end homes on the South Fork are still selling"

Oh really where?

ON THE SOUTH FORK. Homes over 3M are selling. Between 1 and 3 are not selling as quickly. I'll leave it to my handsome South Fork counterpart to explain any further.
0 votes Thank Flag Link Fri Mar 21, 2008
"High end homes on the South Fork are still selling"

Oh really where? 1% of the South Fork inventory sold in the past three months. That means 100 quarters of houses need to sell before any are added.

If you mean the Gin Lane trophy house yes, everything else is in a free fall. Unless you have waterfront, over $250 sf, you are on the wrong side of this market.
0 votes Thank Flag Link Fri Mar 21, 2008
High end homes on the South Fork are still selling. North Fork asking prices are not dropping because sellers are still unrealistic. Sales prices are dropping however. On the North Fork it has always been the case that homes in the 600,000 - 1M market are slow to sell. We just don't have the jobs to support those prices.
0 votes Thank Flag Link Fri Mar 21, 2008
remember the show "Dallas"
South Fork was the name of the ranch
It was nice
North Fork is even better.
0 votes Thank Flag Link Fri Mar 21, 2008
Because they never had the ridiculous run-up in prices that the South Fork had. A quick scan of available houses in the North Fork shows many houses in the $150-180. per square ft. price. This is in alignment with housing prices in other areas of the country, thus no massive boom, no massive hangover. Buyers sense value there and they are correct.

I am fond of noting, according to data on and others, that the inventory to quarterly sales ratio in the South Fork is now the worst in the country at around 1%. That means 1% of the South Fork houses on the market sold last quarter. Second place is Miami with 10%.
0 votes Thank Flag Link Fri Mar 21, 2008
The high end homes on the South Fork are holding their own right now.I have a couple of deals in contract that are within 5%-7% below original asking prices.I also have a deal in contract in Southold that is also within the same percentage of asking price.I really think that the market conditions are very challenging at this time,and I do not expect them to change very much in the near future.This wiil have the "Cream of the Crop"people rising to the top,while others will fall by the wayside.Good Luck to all!
0 votes Thank Flag Link Sun Mar 16, 2008
I agree with Gail, every Real Estate Market everywhere on a local or national level is based strictly on supply and demand. I would caution you though, on your souce of information. There are within the Real Estate Industry solutions that will continuously give you updated information on your specific questions on localities that interest you. All you need is ask a "Realtor."
0 votes Thank Flag Link Sat Mar 15, 2008
It's all in the demand and the inventory on hand.
Web Reference:
0 votes Thank Flag Link Sat Mar 15, 2008
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