Saunders, Real Estate, Hamptons

Real Estate Center

Mar 21, 2011 10:22 AMPublication: The East Hampton Press & The Southampton Press

Deed Analysis, March 24

Mar 21, 2011 10:22 AM

11 Woodview Way, Hampton Bays, $460,000

This 2,150-square-foot ranch house is located on a .9-acre wooded lot on the north side of Hampton Bays, not far from Peconic Bay. The house has three bedrooms, two baths and a small living area with fireplace, eat-in kitchen and dining area. It is typical, in age and size, of many homes across the country.

The sellers purchased this home when it was new in 1991 for $43,000. At that time, according to the U.S. Census Bureau, median household income in the Northeast region was $33,467. So in 1991, an average income for one year was about 80 percent of the cost of this house.

Unfortunately for many buyers, that era of relative affordability appears to be a thing of the past. Today, the median income in the same region is only $53,073. So this purchase (of an older home with higher maintenance costs) costs more than eight times the median income. This enormous increase in the cost of housing is a partial cause of the unaffordable loans that contributed to the recent national financial crisis.

While all this is tough for today’s buyers, it is great for many of today’s sellers. This sale represents a compounded annual return of more than 12 percent per year. A huge return for these sellers who bought at a good place and in a good time.

18 South Davis Avenue, Montauk, $857,500

This contemporary-style home was built in 1987. It is 2,200 square feet with three bedrooms and three baths.

This house has a large great room with living space and dining space separated by a long built-in counter, which forms an attractive center. Other built-ins, with room for storage and televisions, contribute to the sleek, clutter-free appearance of this home, which is in very good condition and painted white throughout to maximize its bright and clean atmosphere.

The lot is fairly small at .4 acre but it has a full-size pool with deck and patio and the property has a two-space garage as well.

Many similar contemporaries were built in the Hamptons in the 1980s. Some are now in disrepair, and others are on large lots south of the highway which are being rapidly replaced with much larger and more expensive homes. But north of the highway, where the market has not outgrown the size of these homes, nicely maintained and updated contemporaries are in short supply and continue to sell well.

65 Clearview Drive, Noyac, $2,850,000

This bayfront home was built in 1980 and is 3,200 square feet, with four bedrooms on .6 acre. The property is bulkheaded with approximately 130 feet of waterfront facing northwest for sunset views of the Peconic Bay.

The house was recently renovated and is in turn-key condition. A large gunite pool, although not on the waterside of the house, is a valuable amenity, particularly on environmentally-sensitive waterfront lots.

The seller purchased this home at the height of the market in 2007 for $2,845,000. Two years ago, at the bottom of the market, it was next to impossible for sellers who bought at the top to get their money back out in a sale. But as the market recovers, we are seeing more and more often that some properties are selling at or near market highs, particularly the rarest commodities that are always in demand, such as waterfront homes, very good land south of the highway, and excellent modern architecture.

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A brand new house for $43,000??? I bought an old house out here in 1987 for $115,000. You must not be counting the land for this purchase.
By Bridget325 (27), Hampton Bays on Mar 26, 11 1:26 PM
Actually $43,000 was the land price without any improvements. That subdivision was auctioned off lot by lot when North Fork Bank took the property back from the developer during the previous recession.
By ReelT (8), Hampton Bays on Mar 29, 11 9:08 AM