Tuesday, October 17, 2006

HAMPTONS REAL ESTATE SEPTEMBER SNAPSHOP - Number of Sales Down, Average Sales Price Up

What do you hear about Hamptons real estate these days? Are You Listening To The Right People?

If you're hearing that things are slow, that's right, for many agents: those who have not established themselves as a trusted advisor to their clients and customers.

If you're hearing that business is brisk, that's right, for some agents: the top agents in the market are busy. Listings are selling and customers are out buying. Those who know how to broker deals are doing fine.

In this type of a market where the "foam" settles down, instead of an 80/20 rule, it becomes a 90/10 rule. Veteran agents know how to create business and how to roll with the ebb and flow of the markets. While many newer agents are feeling the blues, the top 10% are making deals.

Some info worth noting:
Reported Closed Sales for Southampton and East Hampton Townships
September 2005......229 sales......$280,000,000.....Avg of $1,223,000
September 2006......195 sales.......$285,000,000.....Avg of $1,462,000
Preliminary Reports from Suffolk Profiles, Brightwaters, NY.

So, while the number of sales is down 15% '06 vs '05, the average sales price is up 16%, very similar to '05 vs '04 where the number of sales was down and the average sales price was up.

Adding-up the rosters of the four largest brokerages out here, Corcoran, Brown Harris Stevens, Prudential and Sotheby's, there is a total of about 1,000 agents. Add to that all the other small and mid-sized agencies and the "lone rangers" running around, and we probably have about 1,500-1,600 licensees. Last year there were 3,451 transactions in the Hamptons - not all of them had a broker involved.

If the top 10% of the agents average 10 transactions a year, that doesn't leave a whole lot to go around for the rest.

So find yourself someone to work with who's doing business, and leave the whiners at their own pity parties.

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