Be prepared to dig a little deeper into your pockets if you want to purchase a home on the North Fork this summer.
That’s the key takeaway from the first-quarter results released this week by Douglas Elliman Real Estate, said Jonathan Miller, CEO of Miller Samuel Real Estate Appraisers & Consultants.
Miller, whose Manhattan company issued the report, said shrinking inventory and heightened demand are responsible for higher prices.
“Essentially, the market is moving much faster,” he said.
The report tracked activity from Aquebogue to Orient between Jan. 1, 2015 and March 31, 2015. During that time, the North Fork experienced “a jump in sales activity and a sharp decline in inventory,” Miller said.
According to the report, there were 494 homes on the market in the first quarter compared to 597 this time last year. In addition, the median sales price jumped from $436,000 this time last year to $465,000 this year. There were also 25 more home sales in the first quarter of 2015 than there were in the first quarter of 2014.
“We’re having a lot more sales,” Miller said. “So what’s happening is that while inventory is coming on the market, it cannot keep pace with sales.”
Unfortunately, prospective North Fork homeowners shouldn’t expect these trends to change anytime soon: first-quarter results typically set the tone for the rest of the year, he said.
“I think it’s going to be more of the same: continued price growth, not enough supply, and more demand,” he said. “On top of that, throw in an improving regional economy.”
Additionally, the prices of homes in the Hamptons have increased so much that buyers are being squeezed out of the market there and moving here, Miller said.
“The North Fork is on the radar for more people coming out of the city than it was a few years ago,” he said. “And I think that’s driving some of the demand.”