The New York City housing market has outperformed national real estate averages during recent years – a trend that seemed to rub off on the Hamptons, a popular vacation hot spot for city dwellers.
However, according to the New York Post, the unstable real estate industry has finally caught up to this area, as a number of distressed high-end homes are starting to flood the local market.
There are currently more than 1,000 luxury homes worth more than $1 million throughout the Hamptons. Even mild winter weather, which experts hoped would cause a surge of unseasonal rental activity, did little to help keep the marketplace afloat.
One such distressed property that is due to be put up for sale, is the 9,673-square-foot mansion located in Southampton. This home was foreclosed upon in October 2011, and is set to have a price tag estimated between $1.8 million and $2 million, despite its distressed status.
While this is out of the price range for many buyers, both entry-level and seasons, the most recent S&P/Case-Shiller Home Prices Index found that the cost for a home for sale in New York City dipped 2.9 percent in December, making the prospect of purchasing a home in the area more affordable.