T
he Hamptons, a haven for celebrities and ultrawealthy individuals, has seen a significant decline in trophy home sales. According to The Real Deal, the top 10 sales netted $327 million this year, down from $511 million in 2023. This drop is attributed to several factors, including sellers being unrealistic about pricing and a shortage of high-end properties.

    Many of these luxury homes have been in the same families for decades and require extensive renovations, making them harder to sell. Tim Davis, a Corcoran agent with 45 years of experience, notes that it can take time for the market to understand the value of such properties. He attributes the decline in sales to the fact that wealthy owners often don't need or want to sell their homes.

    The ultraluxury price threshold in Suffolk County has increased to $23.9 million, with 41 homes priced above this threshold. The top 10 most expensive listings were all priced at over $50 million in December 2024, up from a $35 million threshold in 2023. To afford the monthly mortgage payment on a $24 million home, one would need an annual income of $6.4 million.

    Despite the decline in sales, Davis is optimistic about the future of the Hamptons real estate market. He expects the ultrawealthy to return to high-end real estate shopping after cashing in their stock investments. The top 10 priciest residential sales in the Hamptons in 2024 included a $89 million oceanfront property, a $49 million mansion on Noyack Bay, and several other multi-million-dollar estates.

    The Long Island shoreline is also benefiting from regular rejuvenation efforts by the Army Corps of Engineers, which has helped to prevent coastal erosion. This, combined with the fact that many of these luxury homes are part of their owners' lifestyle and legacy, suggests a bright future for the Hamptons real estate market in 2025.