Episode 238 - Drew Green

Discussing The Wall Street Effect on Hamptons Real Estate

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Transcript

Andrew Doud 0:08

All right everyone, and it's Thursday. I'm Andrew Dowd, and it is time for our Happening in the Hamptons podcast, our weekly breakdown of the Hamptons market, new listings, and events on the East End. We are sponsored by New York Title Abstract, the Hamptons Leading Title Insurance Firm. Visit New YorkTitle.com. We have, as always, Steve Glick and Dave Retiner, and today we turn guest, Mr. Drew Green. How are you?

Drew Green 0:29

Good morning. How are you guys?

Andrew Doud 0:30

Good to have you back on the podcast. How are things?

Drew Green 0:33

Very well. Yeah, things are good.

Andrew Doud 0:35

Um we have a couple you have a couple great listings. We have a uh a new one I know you want to get to. So um where should we start? What's the what's the vibe? How how what are you seeing out there?

Drew Green 0:44

What am I seeing out there? Uh I I see uh I see a pent-up uh demand for real estate out here. I think that uh we're anticipating a very bullish winter going into the spring. I think that uh what you see is a lot of people that have been invested in the stock market feel that the market has gotten a bit frothy and perhaps we're due for a correction on in the real estate, or excuse me, in the stock market, which will then potentially lead to a run on real estate. I've talked to a lot of uh investment guys over the years, and they've said historically, they say, Well, why would I want to take my money out of the stock market when it's doing so darn well and put it into real estate? Uh but uh in talking to those same guys in recent months, they're saying that the market's getting awful frothy and that they're in turn looking as real estate as a potential investment opportunity. So I think that we could see a real run on uh Hampton's real estate here in the next few months.

Andrew Doud 1:42

Talk to us a little bit about the correlation between what's happening on Wall Street and what we see out here. How how closely tied are those things?

Drew Green 1:48

Yeah, you well, interestingly, the logic would tell you that if Wall Street's doing well, then Hampton's real estate and real estate in general should be doing well. And that's that's a logical assumption. But again, in speaking to the guys that know, that actually work on the street, they'll tell you a lot of times that again, why would I want to take my money out of the stock market when it's doing so darn well and put it into real estate? They tend to, I find at least, they tend to get interested and excited about real estate opportunities when they see that the stock market is, you know, kind of perhaps due for correction. So again, look, I I've appreciated the stock market increases over the last uh two years. It's been tremendous. But uh, you know, that said, I I think that uh real estate could be an opportunity coming up here in the in the not too distant future here.

Steve Glick 2:43

What we're seeing though on Wall Street, what we're hearing is that the bonuses will be big this year, right? You know, bonuses are back um and they're gonna be bigger than ever. And we're seeing that like people are already starting to look at real estate as an option for those bonuses. And that happens every year. So they find out that what they're getting in December and they get funded uh around in February. So we're starting to see an uptick already of interest into some of these properties, just even the high, especially the high-end properties as well. We're been seeing a lot of uptick there most recently.

Dave Rattiner 3:11

And uh, you know, it's interesting that you're saying that because uh I always thought that like if the stock market was roaring, then people are like, Oh, I got money, now I'm gonna spend the money. But what you're just saying is they keep it in there, and I never thought about that until we're gonna be able to do that.

Drew Green 3:24

Yeah, they they right. They at least that's right, again, yeah, let's that was that was always my assumption that hey, the stock I've made all this money, let's take some of that out and put it in the real house. And I and I'm sure there's a uh there's uh some of the people do that, but again, I I find that people uh I I to several times over the years, why would I want to take my money out of the stock market when it's doing so darn well? But again, and talking to these guys, I think some of them, or many of them at least, are saying to me that uh you know it's it's mighty high and perhaps due for correction. I don't want to jinx us, I knock wood, it's been a good run, but uh but uh that could be happening. Right.

Andrew Doud 4:01

Interesting. Um so what do you have as far as properties we want to talk about today?

Drew Green 4:06

Sure. I have uh a couple of properties. Uh 28 Bayview Road North in the Bayview Oaks is a is a home I just recently listed. It is a uh is a six-bedroom, eight and a half bathroom, plus two bonus rooms that could, you know, one could sleep in unofficially, uh, on a half acre uh that's listed at$4.5 million. The historically this home has been a rental home, and the the uh owner has a tremendous rental history on it, which he'd be happy to share. I think it's a great opportunity for somebody who wants to park some money uh into a house that uh again has a proven track record for rental. Um it has quick, easy access to the uh to Little Pecanic Bay, and also a boat launch just up the street. So it's uh it's a great opportunity if you have a a big family, uh a big big group of people that want to enjoy the house. It's uh interestingly enough, it's a kosher kitchen, which uh appeals to many. Uh it's got two and three of everything. It's got basically it's got three living rooms plus another sunroom. It's got again two sinks, two dishwashers, two everything. So it's uh it's really a cool home for uh a number of people, and again, it has a proven rental history. I think that's a great home. And then I have another property uh which I'm uh not necessarily talking about the address just yet. It hasn't gotten signed just yet, but it will be. Um it is a four-bedroom, two and a half bathroom home on an acre, uh, about a half-hour walk outside of uh Main Street, Sag Harbor Village, on a very quiet street. Uh it's coming on at two and a half million dollars. Um it's got a pool, it's got uh triple height ceilings, it's a very cool home. We're gonna be introducing it. Uh the intent is uh we're gonna be introducing it uh the weekend of Thanksgiving. Right now we're doing a little uh painting on the interior of the home, so I'm teasing it out there. If anybody's in the uh two and a half million price point in Lake Sag Harbor and the surrounding area, by all means give me a call. I'll be happy to tell you a little bit more about it. But until we get it uh all painted in new photography, which is we got some exteriors scheduled for tomorrow, and once we'll once with the painting is done, we'll get the interiors, we'll get that up and running. But uh that's one I'm excited about. Again, it's a four-bedroom, two and a half bath just outside of the village at uh two and a half million.

Andrew Doud 6:38

Nice. That's great. Um let's talk big picture, boss. What do you got?

Steve Glick 6:41

Well, hot off the press is the third quarter market report. We're just posting it today on Saunders.com, and this gives a complete breakdown of all the Hamlets in the Hamptons um for the first three. I'm sorry, for the last for the first nine months of the year. I'm sorry, for the third quarter. So it goes through year to date. So the first page you'll see is just isolated on the third quarter alone. And real quick, the home sales um numbers, the sales transactions were down 15%, surprisingly, in just the third quarter. However, the median price was up 26%, and the dollar volume was up 11% in just the third quarter alone. So it's been very busy with these with these prices and these transactions in the third quarter, which carried over for the year-to-date numbers. So the year to date numbers for home sales, sales transactions up nine percent, median prices up seven percent in home sales, and now it eclipsed two million dollars. It's two million, two point oh three million dollars for the median sale price for home sales, and the dollar volume is up 21% year to date. So we're trending to be an overall, you know, we're I think the it's gonna year, it's gonna round out to be about a six billion dollar year here in the Hamptons based on this market report. So great information, a strong third quarter. And if you go through the towns throughout the Hamptons, you could see the breakdown of the year to date. But there was one highlight that I just wanted to bring attention to, and that was Southampton Village, sales transactions up 64% in Southampton Village. Um median price up 22%, and dollar volume was up 74%. But there is a lot of high trades there in Southampton Village. Um, certainly on Meadow Lane, there was about three of those properties over$20 million. And um there was more, but there was significant transactions there. But that's what bring the dollar volume up to 74%. But if you look at the transactions, 64% up in sales transactions. So certainly a lot of activity there in Southampton Village, and they may you may think that, oh, it's all the high-priced homes. But if you look, two to three million dollars in Southampton Village was up 89%, and three to five million dollars in Southampton Village was up 90%. So these are homes, these are a lot of transactions are happening there under$5 million right there in Southampton Village. So definitely go through this market report, check it out, um, really strong, and that's posted on saunders.com. And people wonder well, the third quarter ended weeks ago. Why are we posting it now? We like to wait six weeks after the quarter ends to post a report to make sure majority of the um trades get recorded. So our report is pretty pretty accurate to what really happened out there in the market. So check it out, it's a good one. Um but this week alone, 19 transactions went into contract from West Hampton to Montauk. Last year there were 27, so it's a small decrease of 30 percent. Two years ago there were 18 listings that went into contract, so an increase there of 6%. The breakdown of the 19 transactions, there was five between five and ten million, three between three and five million, four between two and three million, five between one and two million, and two under a million. The dollar volume was sixty-six million dollars. Last year it was ninety-five million. That's a decrease of thirty-one percent. And two years ago, the dollar volume was fifty-two million, so an increase of twenty-seven percent. This past week, nineteen new listings came on, so with nineteen coming off, nineteen coming on. There is no change to the inventory, but the breakdown of the 19 new listings, there were two between 10 and 15 million, four between three and five million, five between two and three million, five between one and two million, and three under a million. Inventory is at eighteen hundred and sixty-seven total listings with fourteen hundred and five active and four hundred and sixty-two in contracts. So only fourteen hundred listings active here in the Hamptons. So definitely not enough inventory, but inventory keeps increasing, but we're certainly still, you know, off from years past where there was you know three or four thousand active homes on the market.

Andrew Doud 10:51

But that that uh that third quarter number seems to be consistent with what you're seeing, Drew. That that you know, things were and I guess at this point still are busy.

Drew Green 11:00

Yeah, absolutely.

Andrew Doud 11:01

Um Dave. Sounded good.

Steve Glick 11:04

It is good. It's a good report. It's a lot of numbers. Still a lot of numbers flying around out there.

Andrew Doud 11:08

But like you said, this the market report is available on Saunders.com. So if you want to get a full breakdown of that, just uh check out the website.

Dave Rattiner 11:16

Yep. All right. Yeah, this weekend we have at Bay Street Theater there's a play called Fahrenheit 451. It's running all weekend, November 14th, from 7 to 9 p.m. And on November 15th, there's a matinee from 2 to 3.30 p.m. And then it also runs the following weekend in November, and tickets are just 50 bucks, and you can go there and be sure to check out Drew Green Drew Green's ad over there. No, but Bay Bay Street's a wonderful, uh, wonderful place to go in Sag Harbor, and it's a good wintertime event to do. So I recommend that. Then if you're looking for some laughs, you can go to the Sticks and Stones Comedy Club. Uh ha ha ha ha ha. It's gonna be at the beautiful home at the Southampton Cultural Center. That's Saturday, November 5th, 8 p.m. The showtime doors uh open at 7:30. Uh and that's at 25 Pond Lane in Southampton. And then, you know, we had such a great lunch in West Hampton Beach. You gotta you gotta give West Hampton Beach credit credit, man. What a what a great village, beautiful village there. But um anyway, the West Hampton Beach Performing Arts Center is going to have a band called Warriors Rock playing, and that's November 15th from 7 p.m. to 9 p.m. And that's right there on Main Street uh with Big Marquee. So you can go and check that out, and you can get tickets at the West Hampton Beach Performing Arts website uh right there. And then finally, we have uh the Southampton Animal Shelter is going to be setting up a shop at Martyrs Landscaping November 16th, starting at 12 p.m. And you're gonna be able to adopt a dog and also look at the beautiful landscapes and flowers that they have at Martyrs and Bridgehampton. That's at 120 Snake Hollow Road uh from 12 p.m. to 2 p.m. And you could adopt a dog like Andrew Dad did last time. We were at one of those. What's that?

Drew Green 13:29

What kind of dog did you get?

Andrew Doud 13:30

He's like a mutt. Uh he's uh I was told uh a Chihuahua and Jack Russell and something else mix. And when we got him, he was like 10 pounds. I'm like, this is cool. It was like a little dog, it's fine. You got a 60-pound dog. Now he's like 25 pounds. He's bigger than you were supposed to get.

SPEAKER_01 13:49

He walked out, big smile on his face, holding him in his arms. So promising potential. He's made a big mistake.

Andrew Doud 13:56

And then Riyalde sets in.

Steve Glick 13:58

There's so much smile.

Andrew Doud 13:59

He's a good he's a good dog. He's really he's awesome. I do think that rescue dogs are they're the best. They're awesome.

Dave Rattiner 14:05

Yeah, they're the best.

Andrew Doud 14:06

We also have rescue cats, they're really good too. I have too many animals, but that's pretty, yeah.

Dave Rattiner 14:10

Drew, we like to ask our guests what their favorite restaurant is. So do you have a favorite restaurant?

Drew Green 14:17

Uh the restaurant my wife and I go to most frequently is probably Page. Uh it's consistent. Uh you know, we get taken care of there. They're very nice to us.

Dave Rattiner 14:27

Uh what kind of food is that? It's not Italian, right? What is that? Like Americana, I guess you might call it. Little of everything. Little everything? Good fish there?

Drew Green 14:36

Yeah, I've had some good fish there. Yeah.

Dave Rattiner 14:39

Page. I'm gonna get in there.

Steve Glick 14:40

Page, yeah, it's a good one. That's nice and easy.

Dave Rattiner 14:42

Nice and easy spot. It's a good staple that's been there for a while.

Steve Glick 14:45

Yeah.

Dave Rattiner 14:46

That's cool. Yeah. Yeah, I like the bar there, too. Yeah. All right, cool. Great. Good. I guess that's what you got.

Steve Glick 14:54

All right. Sounds like a fun weekend. There you go. It's gonna be a blast.

Andrew Doud 14:57

Um, all right. Drew, thanks for joining us. We'll call that a podcast for today. Everybody have a great weekend. We'll see you next week. I'm Andrew Dowd, and that is what's happening in the Hamptons.