As workers return to offices and New York City “reopens” again, New Yorkers are considering second homes closer to the city. Other buyers are looking for weekend retreats and “partnerships to buy” in the Hudson Valley and the Hamptons. What’s in store for these markets, already booming as people sought refuge during the pandemic? Leading industry experts delved into the hottest spots and how best to handle regional deals during a March 24 virtual panel hosted by the Hudson Gateway Association of REALTORS®, Inc. ( HGAR) and OneKey MLS.
“Making the Deal: Finding New York Second Homes” featured Katherine Jennings, Branch Manager, Millbrook Office, Houlihan Lawrence; Randy Florke, Founder and President, The Rural Connection, Hudson Valley/Catskills; Jason Karadus, owner and principal broker, Corcoran Country Living, Hudson Valley/Catskills; and Robert Nelson, Executive General Manager, Brown Harris Stevens for The Hamptons.
Richard Haggerty, CEO of HGAR and President and Director of Strategic Growth for OneKey MLS, New York’s regional multiple listings service, began with an overview of the regional housing market. Citing OneKey MLS data to compare single-family home sales trends from 2019 to 2021, Haggerty pointed to significant increases in both the number of transactions and median prices in several counties.
“2020 and 2021 have been banner years for the overall market, but the second home market has particularly benefited from this two-year period,” Haggerty said. “Sullivan County just knocked it out of the park, with a 35.6% increase in transactions and a 71.5% increase in median sale price.”
Dutchess County saw a 29.3% increase in transactions and a 27.5% increase in median sale price, while Putnam County saw a 31% increase in transactions and a 27.5% increase in 23% of the median sale price. Haggerty noted a 13.5% increase in the number of transactions in Suffolk County and a 27% increase in the median sale price.
The event was moderated by Brian D. Tormey, NTP, President of TitleVest, a New York-based provider of title insurance and related real estate services. The hour-long discussion focused on rental trends, regulatory reactions and pushbacks on Airbnb; non-New Yorkers buying vacation homes; the uniqueness of small towns and the partnership with local experts; trading patterns and whether supply will catch up with demand.
The panel was asked whether technological methods of vacation home ownership, such as Pacaso, are affecting the secondary market and whether buyers are trying to leverage Airbnb, vacation rentals by owner, or VRBO, and new forms of ownership like a shared share to buy vacations. houses.
“The Hamptons has always been a place people come for the summer and in the 1960s, 70s and 80s it was known for a lot of group sharing,” Nelson said. “It didn’t go over too well with many, so they passed laws. In addition, prices for summer rentals have increased so much that young people, even if they received a share, simply could not afford it.
As Airbnb has taken off, Nelson said, short-term rentals have picked up, even though it may be illegal in some jurisdictions in the Hamptons to rent short-term for less than two weeks. The pandemic has changed that dynamic, Nelson said: “Now since Covid it’s reversed. Everyone is back in rental for the season, the summer, six months, a year.
Jennings talked about the types of homes and properties buyers are looking for in the Hudson Valley and how distance from New York has become less of a factor during the pandemic.
“The psychology of the second home buyer has changed,” Jennings said. “They have a vision of what they want – they don’t really buy the ‘bricks and mortar’ as much as they buy the ‘idea’ of a place of tranquility, a retreat. This vision is very different for everyone. This is one of the reasons buyer agents are so important in the Hudson Valley, to understand the different markets, because all of our hamlets and towns each have their own little fingerprint.
The panel weighed in on how the ‘work from home’ trend continues to impact the second home market and how that could change as more workers return to the workplace.
“The pandemic truncated what was already happening in the market,” Florke said. “Some people were starting to work from home, one day a week. Covid validated it. You don’t have to be in the office five days a week. And the pandemic gave many people the excuse to do what they wanted to do… to leave the upstate town. Now, as the pandemic recedes, people don’t want to pull their children out of schools in Rhinebeck or Cold Spring to return to the city. Many have reoriented their way of life and I think most are sticking to it.
Another trend noted by the panel is that non-New Yorkers are looking for second homes in the Hudson Valley.
“We have seen an increase in interest and inquiries from West Coast-based buyers at the higher end of the market, particularly properties $3-5 million and up. We’ve listed Sylvan Rock, the first single-family residence designed by Aston Martin for $8.25 million. The majority of inquiries, offers and ultimately the buyer came from California. »
Karadus added that part of the appeal was “the modern architecture, which is more available on the West Coast but rare in the Hudson Valley, but rapidly growing in popularity.”
To watch the full webinar, Click here.