Andrew Doud 0:04

Good Thursday afternoon, everybody. I'm Andrew Dowd of Saunders and Associates, and welcome to our inaugural Happening in the Hamptons Podcast, a weekly breakdown of the Hamptons market, new listings, and events on the East End. Joining us today is Andrew Saunders, founder and president of Saunders and Associates, Steve Glick, our senior VP of Advertising and Marketing, and Dave Retiner, Director of Digital Marketing and Technology. Gentlemen, thanks so much for joining us. Andrew, I want to start with you. 76 deals in the contract this week in the Hamptons market. How does that number compare to where we might have been this time last year?

Andrew Saunders 0:36

Well, last year, this time, we did 45 deals, went into contract. Last year, 2019 was an unremarkable year in the Hamptons. The market was off a bit. This year is an entirely different story. Through September 10th, the latest numbers indicate transactional activity was up 34%. We did two points just under $2.6 billion against comps in 2019 of a billion nine. And that really reflects the enthusiasm that we're seeing among buyers to transact. It's really been an onslaught since March of buyers out here in the Hamptons. And our sense is that it's not going to end anytime soon based on the narrative that we're hearing from prospective purchasers. There's just real enthusiasm for moving forward here in the Hamptons. I think the ultimate statistic was the one that you just underscored. 76 deals went in a contract over the course of the past week. And that's not unlike prior weeks. We're doing 80 deals, 75 deals, 65 deals. Interestingly, only 53 new listings were launched over the course of the past week. So there's a deficit of 23 listings between the number of deals that were effectively taken off the market and the number of new supply that came into the market. Now, our total market, as of yesterday, there were 2,547 homes for sale in the Hamptons. All price categories and actually all product categories that includes commercial, land, multifamily, and single-family residential homes. 2,547 homes. This disparity between new supply has continued now for quite a few weeks, quite a few months, actually. And if you extrapolate that out over the course of a year, over 52 weeks, that shortfall of 23, 20, 25 listings per week equates to about 1,200 listings a year. That the overall inventory would be depleted if this trend continues. And our thesis here is that this trend will continue. The data that we're seeing suggests that this is not ending anytime soon. Wow.

Dave Rattiner 2:33

So wait, hang on one second. So would that mean that there would be half, if this continues, that that would mean there would be almost half as few listings on the market?

Andrew Saunders 2:41

That's right. I mean, look at you know, 23 listing deficit over 52 weeks is 1,196 listings, Dave, over the overall inventory currently of 2,547 homes. That's 47%. I mean, when when people talk about busy markets throughout our country or anywhere, you know, if the market, if inventory depletes, 6% or 8%, those are like monumental numbers. Where the this, you know, this number, if you look at it through this lens, um, you know, the strength in the market, it really shows you that what's happening here is really an unprecedented move in the market. And it's the ultimate talking point to agents when they're working with buyers who who are kind of snagging their coat on that last 50,000 or 100,000 that they haven't come uh that they're hesitant to come up. Look, if this continues, all of these homes are gonna look cheap in three months and four months, you know. I mean, to have a market where your inventory is depleting on an annualized basis by almost 50%, it's the ultimate rallying cry to investors. If you go to an investor uh and and and and you know underscore that profile of the market, that's certainly gonna generate you know significant interest.

Andrew Doud 3:48

And it has. Andrew, if somebody's if somebody's been looking, they're they're hearing that it's it's obviously a seller's market, all these deals are going in the contract, they're like, you know what, I'm just gonna I'm gonna wait. I'm gonna wait a little bit and I'm gonna wait till this dies down. You're saying though that you don't see this trend tapering off anytime soon. So why is now the time to buy?

Andrew Saunders 4:08

Well, look, we're all about the data, and the data suggests here that um that not only is the market quite dynamic, but also that it's going to continue for some indeterminate period of time. And so look, I think you have to be decisive. You know, real estate um is, in my view, largely about timing. You know, you you identify a property at a moment in time at a price, and you know how decisive you are is frequently the the explanation for uh and the reason why you did well in the future. You know, you have to be somewhat visionary and take a shot and whatnot. But you don't, you know, the data points are out there really pointing to the rationale of uh pulling the trigger today. If you find something that is sort of market priced, I would not snag your coat on a few dollars in either direction because the momentum in the market is so significant and so unprecedented that it really suggests that all of these assets are likely to be higher in the coming months than the other.

Andrew Doud 5:06

So even if you're not getting a deal, you're not getting it for $20,000, $50,000 less. It might look like a deal a few months from now. Exactly.

Steve Glick 5:12

So Andrew, you're talking about the data. You said there were 76 transactions. Where's the sweet spot? Where are the bulk of these transactions happening? Is it is it all over the place? Is it is it the high end? Is it the low end? Is it the low end? Where are you seeing these numbers fall?

Andrew Saunders 5:26

Look, critical massive transactions in the Hamptons, year after year, uh continue to occur at 2 million and under. It's moving up a little bit to 3 million and under, but that's where all the action is. Like last week, for example, of the 76 deals, 49 of those transactions, or 64%, were under $2 million. And 67 transactions or 88% were under $4 million. The great misinterpretation about the Hamptons is that it's all about these headline making transactions of $10 and $15 and 20 million. Last year in the Hamptons there were around 50 deals that traded over $10 million. And over 2,000 deals that traded under $10 million. So for me as a proprietor of a firm, you know, we focus a lot on having an important footprint in $2 million and under. And in fact, we're a tour de force in that end of the market.

Andrew Doud 6:19

So if you have uh either a high-end listing or a two million and under listing, uh obviously you want to list it now as a great time to sell your house, and selling your house starts with marketing. Steve, that's your expertise. So what are you telling people that are looking to possibly list their house right now in this current market?

Steve Glick 6:38

Yeah, absolutely. I mean, look, the demands from the agents and from the market is really simple. It's get the listing launched um effectively and as quick as possible, but also have be knowledgeable of what you're selling. So so many times over we see these listings coming on the market so quickly when you call the agent, they don't even know what it is that they're selling. We work with the agents here at Saunders and to really identify what it is about the property that makes it so special, and we highlight those attributes into the marketing. We work closely with New York Title, who's our affiliated title company, and we put together a land use report that really identifies um all the all the ins and outs about the property, about the setbacks of wet use, the land use of the property, the surveys, and it's really important to know how that property landscape lays out and what you're selling. So, my advice um, of course, to the butt sellers out there is work with an agent that is very knowledgeable of the property, very um educated on the market, and can really work with you and someone that you could trust.

Andrew Doud 7:38

So, even though the market's hot, the right agent and the right marketing strategy is still just as important.

Steve Glick 7:42

Absolutely. You want to work with a big marketing team that's gonna be able to move quickly and mobilize on behalf of the listing. My team here at Saunders has 16 individuals. We have four full-time photographers, drone operators, social media team, graphic designers, copywriters. We have the whole onslaught of uh team behind us that really goes and markets these listings effectively and and quickly to get them launched to market because every day that goes by is a missed opportunity to sell this property.

Andrew Doud 8:09

So, of the 76 that went in the contract this week, what stands out to you?

Steve Glick 8:13

It that's a good question. I'm looking at these numbers right now that Andrew just passed to me, and I see one listing over $20 million on this list. And if I had a bell, I would ring it because this listing was listed and sold by Saunders or put in a contract by Saunders. The address is 33 Hitherlane in East Hampton. Shout out to the Lori McGarva team that put this listing on the market only 60 days ago. 60 days for 20 million dollars. 60 days we got it in contract.

Andrew Saunders 8:41

The last asking price was 20 million, and uh Lori and her team did a phenomenal job in getting that thing uh seen and sold.

Andrew Doud 8:49

Look, you guys have been doing this for a long time. I mean, 20 million dollars to be sold that quickly, is that common? Is it is it just this market? I mean, put that in a little perspective for us.

Steve Glick 8:58

It is certainly not common, but when something is priced right, it looks good, the agent behind it was able to you know get it out to her prospective buyers and mark bring it to market quickly. It it all those things together work. And in this market, like Andrew described, it's so active. We're seeing this. This is this is becoming like the new normal where listings are coming on the market. If they're executed properly, they're gonna sell within the first you know couple months of launching a product of a listing. Um at Saunders this week we did launch a couple significant properties I would love to highlight. Um, the first is 183 Job's lane in Bridgehampton. This is an ultra modern um new construction house in the heart of Bridgehampton, listed with agents David Lineweaver and Nancy Mizrahi, based out of our Bridgehampton office. And it's basically a work of art, is what we're calling it over here. It's um, you know, 5,600 square feet on about one acre, and it's it's something that has to be seen. Um the headline is modern meets art, so that just tells you a lot right there. Also, if you're into oceanfronts, we just launched an ocean front listing in a ganset address is 169 Atlantic Avenue, listed with David Zazula, based out of our East Hampton office. This is an ocean front property adjacent to reserve, and the price tag on that is $11.9 million, and it looks phenomenal. The last listing I like love to highlight is all the way out in West Hampton. It's 413 Mill Road in West Hampton. This is minutes from the beach. This is listed at 1.699 million, and this listing is about half an acre with 3,300 square feet. Listed with Natalie Lewis, based out of our West Hampton Beach office.

Andrew Doud 10:45

Okay, so let's just say you have bought a house in this hot market and you're like, great, summer is behind us, it's now October. So you have your new house in the Hamptons. What are you gonna do? Where do you go? What's going on, Dave?

Dave Rattiner 11:00

I guess you're going to meet. I'm gonna tell you what's happening in the Hamptons. I'm gonna tell you what's happening in the Hamptons. So you can check out what's happening in the Hamptons every single week at happeninthehamptons.com, which is owned and operated by Saunders and Associates. And every single weekend we update the uh events that are happening in the Hamptons. This weekend I'm gonna give you my top three favorite things to do. And my number one favorite thing to do this weekend is Hank's Pumpkin Town. And if you don't know what Hank's Pumpkin Town is, you guys have not been driving around the Hamptons.

Steve Glick 11:34

I think everybody in this room has been to Hank's Pumpkin Town.

Andrew Doud 11:37

We're setting the traffic outside Hank Pumpkintown.

Dave Rattiner 11:39

Exactly. The traffic is a little unbelievable. It's a popular place. Everybody wants to be there. The traffic is a little unbelievable. It's probably, in my opinion, the most genius business in the Hamptons. Basically, you provide a giant farm where kids can just run around like crazy and you offer them uh apple picking and barn rides, and there's all of this fun. There's these fun mazes and silly games that you can play. It's such a good time. I mean, I I've never gone before with uh with I've only with kids. My my daughter, I just had a daughter and she's uh only three months old. Congratulations. I'm not bringing I'm not bringing her just yet, but um every every family, every family I know in the Hamptons has gone, and now that it's open, I highly recommend that you're it's a great thing to do.

Steve Glick 12:26

It's outdoors, right?

Dave Rattiner 12:28

It's safe, it's outdoors, and uh fresh air is always a good thing. Very friendly. What else you got for us? The second fun thing for October is there's Oktoberfest specials at Town Line Barbecue. So we get lunch there sometimes, and you can kind of tell that Town Line Barbecue is coming up on uh your drive because you can smell it when you're about 500 yards away from it. It's absolutely sensational. It's operated by the same people that own Nick and Tony's, and they they also own uh Rowdy Hall La Fandita and La Fandita, and there it's just it's probably one of the best op restaurant groups out here. Um and every time I go there, uh I feel like I need to fall asleep afterwards. But they have the uh Oktoberfest uh German-style foods going on there, so you can get all those great giant Bavarian pretzels and all that good stuff. Um, and you know, to have the Oktoberfest thing going on right now, it's just kind of a timely fun thing to do. Um, and then my final thing uh to do uh is uh this girl, Bethany Della Pola. She's a very, very uh well-known uh theater person out here, and she's running this uh Broadway show and this out outdoor and socially distance workshop, music style uh theater class for kids. Uh, and she's gonna just be teaching kids from one o'clock to four o'clock p.m. uh throughout the Saturdays of October, where you can do at Bay Street Theater, where you can do uh bring your kid and they can you know do a like kind of like a theater camp, uh and the theme of it's gonna be Willy Wonka.

Andrew Doud 14:02

So plenty to do year-round in Hampton. Still lots going on in the fall. All right, listen, thank you so much, Dave, Steve, and Andre. I just want to toss it back to you. Um for our listeners, buyers, sellers, whatever position you might be in, whatever your price point, what's the give us one last takeaway about the current market?

Andrew Saunders 14:20

I think again, look, it's uh unprecedented moment uh in the history of Hampton's real estate, and it's really important to be decisive because again, the data really uh is pointing to this continuing and the inflation really permeating the market, which we're already seeing now. You know, the inventory is depleting so rapidly that new inventory is coming on the market. This is a very efficient market in that when there's an imbalance in the supply-demand equation, new supply comes on the market, but at higher prices. That's an example of a market working, you know, uh, you know, working properly, and we're witnessing that now. So I really do believe that going forward, you know, we're gonna be sitting here three months from now talking about the data points of September and October and saying, boy, the market seemed pretty cheap, you know, it's pretty cheap back then, looking through the lens of December or January 2021.

Andrew Doud 15:07

Be decisive. I like it. All right, thank you so much, gentlemen, for joining us. The Happening in the Hamptons podcast is brought to you by New York Title, the leading Hamptons title insurance firm. And to see all our listings and find an agent, go to stonders.com. I'm Andrew Dowd, and that's what's happening in the Hamptons.