The influx of wealthy buyers who have purchased homes in the order of $ 1 million “is changing the complexion of the region,” added Ms Watson, including a profusion of demolitions, gut renovations and increased interest in land purchases.
On the upside, revenue from a 2% conservation tax on sales of homes in Southampton of $ 250,000 or more is up 40% from a year ago, Schneiderman said. The funds are used to buy undeveloped land to keep it open and to buy development rights so that farmers can continue farming. “It has been very effective in terms of preserving our rural character,” he said.
The “bright side” for owners of smaller homes who might want to cash in and take their windfall elsewhere, Watson said, is that “now is the time to sell”.
From April to June of last year, Greg D’Angelo, a custom builder, rented out his rental property – a tiny house with a pool on a stamp-sized lot in Sag Harbor – for nearly of $ 80,000 to a family fleeing the city. “It was our last hurray,” D’Angelo said. In January, fearing that the moratorium on Covid evictions would make the eviction of unsavory tenants or squatters impossible, he sold the house for $ 1.5 million. “It was the market that drove us to sell it,” he said. “I got crazy money for it.”
While the market typically slows down before Thanksgiving and picks up again in February, this year “we’ve been through the holidays doing business,” said Gary DePersia, an associate broker at Corcoran. “Much of the inventory that had been on the market for years is gone.”
On Shelter Island, a 10,000-square-foot gambrel-style home with a 150-foot dock on Peconic Bay closed for $ 9.1 million last month after being on the market, initially at $ 10.9 million for two to three years. “It’s a niche market,” Mr. DePersia said. “A rising tide lifts all ships.”