"They get their bonus and they think, ‘hard asset — let’s go buy some East End dirt,’” said Desiderio, referring to the Wall Street payouts that drive the Hamptons real estate market. “They’re finally spending the money.”

Home prices in New York’s Hamptons, the Long Island resort towns favored by summering Manhattanites, increased 4.2 percent in the second quarter from a year earlier as buyers opted for more expensive beach properties.The median price of homes that sold in the quarter rose to $937,500 from $900,000 a year earlier, according to a report today by New York appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate. Thirty-nine percent of all sales completed in the Hamptons and Long Island’s North Fork were for houses priced at $1 million or more, the second-highest market share for such properties in three years.“I’d look at the market as stabilized but punctuated with very visible trophy property sales,” Jonathan Miller, president of Miller Samuel, said in a telephone interview. “This is a phenomenon we saw in Long Island, Brooklyn, Queens, Manhattan and Westchester. Across the region, the top end of the market outperformed the overall market.”
By Oshrat Carmiel and Ashwin Seshagiri, Jul 21, 2011 Bloomberg

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Gin Lane Home, Southampton, LI