This thread has been going on for two years, my last post was almost exactly a year ago. Prophetic for what has happened to the Hamptons real estate market. The market was soft for the first three quarters of 2008, but now the storm has arrived:
trailing average through Feb. shows a 17% drop in prices in three months, not year over year, THREE months. This does not even vaguely represent the market because in order to have a statistic we have to have a sale,and there simply aren't many. If these thousands of houses that are for sale were dropped to a price at which they would actually sell, we would show a much greater drop. HREO two years ago showed about 3800 houses for sale in the South Fork, as of this morning its 7,251, or roughly double.
My prediction is 3 bedrooms, 1/2 acre with a pool, will settle on $400k in most areas of the South Fork, less for the North Fork. Median price in the South Fork is at $560k today, which means fully half the sales are already below that!