T
he Hamptons, a long-time playground for New York's elite, has seen its median sale price soar above $2 million for the first time in history. According to Miller Samuel's quarterly report for Douglas Elliman, home prices in the area hit record highs in the first quarter of 2025, signaling a scorching summer for the wealthy enclave's real estate market.

    First-quarter sales nearly doubled compared to the same period last year, growing an impressive 85.5% year-over-year. Deals increased sharply from 230 to 420 closed sales across the coastal community, with the median price hitting $2.04 million. The report highlights a return of confident buyers to the South Fork, particularly in the mid-range segment of properties priced between $1 million and $5 million.

    This "Hamptons Middle" segment accounted for nearly 55% of deals in the first quarter, up from 39% last year. Report author Jonathan Miller attributes this trend to buyers in this price range feeling more comfortable taking out a mortgage, rather than paying cash. In contrast, luxury sales struggled, with average prices dipping by 11.8% and the entry price threshold dropping 7.5%.

    The growth in listing inventory has also contributed to the market's shift, increasing by 9.7% in the first part of 2024. This expansion is reducing bidding wars and enabling more sales. Miller notes that Wall Street gains are closely tied to the Hamptons market, with profits and bonuses from last year fueling demand for luxury properties.