The Hamptons sales and rental market are on fire. There are very, very few rentals left, and as for sales, just last week, for instance, 78 houses went into contract! Many veteran agents are complaining about the lack of inventory. (Meanwhile, the opposite is true in New York. According to The Elliman Report, in May, there were 32 new signed contracts for Manhattan co-ops priced $1 million to $1.99 million, compared to 150 in May 2019, a drop of 78.7 percent.)
To find out more, we chatted with Cody Vichinsky, co-owner with brother Zach Vichinsky of Bespoke Real Estate, a firm that lists properties valued at $10 million or more.
HHS: This is the year of Covid. People are fleeing Manhattan for the Hamptons, and there’s a spike in enrollment in area schools. How does that affect real estate?
CV: I read in a few different sources that enrollment in general is up 600 percent out here. A lot of people who have been out here since the Covid rush, I think, have a renewed appreciation for what this place offers. Its sheer beauty, its safety, its emphasis on healthy lifestyle.
There are some beautiful things about the Hamptons that are hard to replicate. People are sorting out their next steps in life: where they want to be, how they want to raise their children, where they want to spend their time. If they’re fortunate to have multiple assets, how they want to organize their portfolio. This is a very worthwhile place to put down roots, whether temporary or long term.
HHS: Is it going to be possible for people still looking now to be able to get kids in school this fall? It just seems like a very short time frame. And we still don’t know if the children are going to be in school this autumn.
CV: I think this is a little bit of a challenge; everybody is on pins and needles as to what’s going to happen, especially around school. I have clients whose kids go to Horace Mann in the city, schools like that, and they don’t want to give that up or lose their spot there. There are people who put a lot of emphasis on their kids’ educations and others who are more laid back, saying they think the kids will be fine no matter what.
HHS: Schools are unbelievably competitive in the city.
CV: For most, it’s about safety being paramount. Who knows, actually, what it’s going to be for a lot of people. The idea of running back to the city in September I think is not in even their scope of conversation. It’s tabled until further notice.
HHS: I was interested to see that Avenues School is planning to open up in the autumn here. $45,000 a year tuition for Zoom classes.
CV: They’re making a big dash. And I think you’re going to see Sag Harbor go through the roof and Avenues and Ross—every place that, you know, can take kids at this point that has some value that they can add—you’re going to see enrollment go through the roof. A lot of people have equated this boom to 9/11, which stimulated a more year-round economy outside of just quote unquote, locals.
I think you’re going to see a similar evolution in the market. People have been here; they’re going to want to be here. And it’s a great place to be. But I think you’re also going to see that in Westchester County and parts of Connecticut, Greenwich, and so on. Some suburban markets are also going to experience something very similar.
Obviously, I’m interfacing with people all day. And “What do we do with the kids? Where’s the best place for our kids?” is a big thing for a lot of people, certainly top of mind. And it drives the real estate conversation.
HHS: Bespoke is still $10 million and up. How is the activity in that sector? From what I’ve heard, $2 million and under is on fire. Or if it’s a turnkey place, people are jumping on it. Are you finding that people want that sort of new new new new still?
CV: I think everything you said was accurate. I actually think all price points are doing well. Fourth quarter of last year, $10 million and up had a record quarter. Last year was kind of a tough year, but in the fourth quarter, things opened up and that momentum carried all the way through first quarter. And, you know, when Covid came, nobody knew which way things were going to break. But we had tremendous momentum. We had big deals in contract.
We’ve done more thirty million plus deals this year than in the last two or three years aggregated. Statistically speaking, the ten million and above market is performing the best it’s ever performed. I think when the data comes in, you’re going to see maybe the Hamptons’ best year. And that’s at all price points. But the bigger concern I have is there’s just not a lot to sell any more.
Inventory has become very meager and there’s a few things left, but they’re either new or very expensive for the market. And those properties have to take their time to go through the process. Go by settings: oceanfront, waterfront, new construction. If you really boil it down what the availability is, the long-term perspective is concerning for brokers. I’m interacting with brokers all day and they’re scratching their heads saying, “I have nothing to sell my clients.” They’ve looked at everything and nothing struck a chord, so I think we’ve seen a massive absorption over the last several years. And this is just the final push. So now we’re waiting for new inventory to start to surface.
Bespoke is having our best year ever. But we’re still focused on improving what we do and our unique model. We’re just grateful to be in the position that we’re in. We’re very fortunate.
HHS: I’ve always felt you guys get the job done. All respect. There was some scoffing when you guys started.
CV: There still is! We’ve had a tremendous amount of scrutiny from people. It just is what it is. I think when you try something new and you want to be different and you work the way we work, which is aggressively and with a focus on results, you’ll get scrutiny from all the people who aren’t in that same mindset. The best thing they got is to scoff in the shadows. They just make us work harder.
