Breitenbach Real Estate

Jan. 28 (Bloomberg) — Home sales in the Hamptons, the New York vacation getaway for dealmaker Stephen Schwarzman and movie star Sarah Jessica Parker, surged 59 percent in the fourth quarter as two years of declining prices lured buyers.

Transactions climbed to 409 from 257 a year earlier, the biggest increase in seven years of recordkeeping, New York-based appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said in a report today. Competition for properties pushed the median price up 4.9 percent to $917,900, the first year-over-year gain since the beginning of 2008.

“This is all very good news, better than expected, but I still think we’re not through this yet,” Miller Samuel President Jonathan Miller said in an interview. “The surge in activity to more normal levels, a large portion of that is a release of pent-up demand.”

The median Hamptons home price dropped 31 percent since 2007 as financial firms recorded $1.74 trillion in global losses and asset writedowns tied to sour U.S. home loans. Wall Street executives drive Hampton’s property sales.

Part-time residents have included Schwarzman, chairman and chief executive officer of Blackstone Group LP, and billionaire Ronald Perelman. Hamptons sales slumped in 2008 and the beginning of 2009 as the financial industry cut 26,300 New York City jobs in 12 months, the state Labor Department said Jan. 21.

New York City’s unemployment rate jumped to 10.6 percent in December, the highest level since 1993.

“We have two macro issues, unemployment and credit, that are not expected to change significantly in 2010 from where we are now,” Miller said. “It’s more the second half of the year that I’m concerned about.”

Price Cuts

Hamptons home sellers cut an average of 14 percent from their asking prices to attract buyers in the fourth quarter, compared with discounts of 16 percent a year earlier, Miller said.

Peter and Annette Smergut found a buyer for their East Hampton ranch-style house after agreeing to sell it for $815,000, a 19 percent discount from their original asking price.

The 1,800 square-foot home includes a pool, pond and private beach access.

The sellers got a deal of their own, purchasing a new place in East Hampton for $715,000, 28 percent less than the asking price 10 months earlier, said Peter Smergut.

“It was a hit for us and a hit for them,” he said.

Two other real estate brokers issued Hamptons sales reports this month. The Corcoran Group, based in Manhattan, said annual home sales tumbled 22 percent in 2009 and the median price dropped 4 percent to $830,000.

Broker Views

Town & Country Real Estate said the median price across 11 towns and villages that comprise the Hamptons fell 2.5 percent to $905,000 in 2009, while the number of properties changing hands climbed 4.9 percent to 1,045.

Each brokerage report draws data from different sources.

“The fourth quarter was the saving grace for all of 2009,” said Judi Desidario, president and chief executive officer of Town and Country Real Estate.

Luxury sales throughout the Hamptons and Long Island’s North Fork climbed to 55 properties, a 53 percent increase in the fourth quarter from a year earlier, according to Miller Samuel and Prudential Douglas Elliman.

The median luxury price dropped 3.4 percent to $4.5 million. Miller defines the luxury market as the top 10 percent of sales, which in the fourth quarter included properties sold for $3 million or more.

High-end sellers cut their price by an average of 17 percent compared with 9 percent a year earlier, Miller said.

Brokers Advise Renters: Price Wisely And Advertise Amenities

By: Katy Gurley

Southampton - The summer rental market is off to an early start this year, and brokers and other experts say it’s smart to price your property wisely and advertise amenities.

“A pool is kind of like a must, it’s the number one thing renters look for,” said Matthew Breitenbach, associate broker for the Corcoran Group.

The rental market has started early, he said, and some landlords have adjusted their prices downward. Some are also asking the same as last year.

“It’s been very busy. People are definitely starting to look and inquire. It’s a stark contrast from last year when the rental market was dead until about April. Last year there was a lot of uncertainty and bad feelings that have eased this year. A lot of landlords have brought their prices down.” Rents range from $10,000 to $20,000 up to $300,000 for the Memorial Day to Labor Day season, depending on what kind of house you rent.

To be competitive in this market, amenities are more important than ever, said vacation home expert Christine Karpinski.

“Sometimes it really is a good idea to invest a few thousand dollars to make your home more desirable to vacationers,” she said. “Many upgrades will pay for themselves after just a couple of extra bookings. Besides, your expenditure may be a tax write-off.”

“You don’t necessarily have to put in a pool or tennis courts, although they are popular amenities that renters seek,” Karpinski said. Just be sure to include the distance you are from the beach or the closest tennis courts.

Karpinski is director of Owner Community (www.OwnerCommunity.com) for HomeAway.com and author of “How to Rent Vacation Properties by Owner, 2nd Edition: The Complete Guide to Buy, Manage, Furnish, Rent, Maintain and Advertise Your Vacation Rental Investment” (Kinney Pollack Press, 2007, ISBN: 0-9748249-9-2, $26).

Nowadays, people want to bring their pets on vacation, and landlords who ease up their restrictions on allowing pets are more likely to attract renters.

“I’ve known homeowners to double their bookings when they start allowing pets,” notes Karpinski. “This is a great way to add value to your home at virtually no cost.”

Barbara Feldman, broker and senior vice president for Saunders & Associates, and a dog lover, has compiled a list of landlords who will allow pets, particularly dogs.

“I kept getting phone calls from people who want to rent but ask, ‘Can I bring a dog?’ So I called a million landlords and I compiled a list and sent out an email notification to my customers. And not only did I hear from a lot of renters, but I heard from landlords as well who wanted me to put them on my list.”

Renters with dogs are usually happy to put down a deposit for their pet.

Other amenities renters seek include televisions and Internet access, Jacuzzi and or hot tub.

“If your home does not have one, purchasing a hot tub might be well worth the cost when you consider all the renters it may attract in the cooler months,” noted Karpinski.

Fireplaces, pool tables and porches are more amenities renters seek, she said.

“Adding a portable fireplace is a wonderful way to add warmth and ambiance to your property,” said Karpinski. “And there are plenty of models to be had for just a few hundred dollars.

“And, no matter what type of outdoor living area you have - a porch, deck, terrace, or patio - be sure to provide a detailed description and photos in your listing,” she added. “Another popular search term is “balcony,” so don’t forget that keyword when posting a photo of your view. Add the appropriate outdoor furniture and you have an inviting bonus living space that renters will love. Oh, and don’t forget to include pictures of that stunning view.”