Breaking the Hamptons' clubhouse mindset

The July issue of The Real Deal looks at the practices of the tight-knight group of brokers that control real estate in the Hamptons, which are seen as unethical by many.

During the real estate boom, as properties changed hands for eye-popping prices, many homeowners were blissfully unaware of unsavory behavior. But now that the market has come to a screeching halt, the region’s notorious lack of transparency is worsening the downturn, locals say.

The fact that the downturn hit Wall Street — the Hamptons’ lifeblood — so hard may, ironically, help change things for the better on the East End.

Sharp Price Drops in Manhattan Apartments

The Times reports on the recent release of the Q2 Manhattan market reports, which show big declines in price and volume from a year ago, while activity has picked up in the last 6 weeks.

The number of closings fell more than 50 percent, and prices in some categories were reported down as much as 25 percent, compared with the same quarter in 2008. Sale prices were also down from those reported in the first quarter of 2009.

City Council OKs Fordham’s Lincoln Center expansion

Crain’s reports on the approval of Fordham’s plans to add six new buildings to its campus at Lincoln Center over the next 25 years. The expansion includes new academic buildings and dormitories, which will support the schools growing enrollment.

The vote was practically guaranteed since earlier this month Gale Brewer, D-Manhattan, who represents the Upper West side neighborhood, extracted some concessions from the school to win her support. She negotiated to reduce the heights of the buildings that Fordham will erect. She also got the school to agree to build a public atrium on Columbus Avenue and an escalator to lift people to elevated public open space. The full council typically votes to support the member who represented the district with proposed project.

Luxury Condos, All Bids Considered

The New York Times reports on the upcoming absolute auction at The Beacon where the first 12 units will be sold regardless of price.

“Our biggest problem today,” the developer said, “is buyers’ not knowing if they are getting the best deal — not knowing if they wait a little longer whether a better deal will be available. With the auction, you get everybody in a room, and they can see what other buyers, people who would be their neighbors, think a home is worth, and each one can be confident.”

The Hamptons Stress Test

Vanity Fair’s Michael Shnayerson explores this year’s decidedly different Hamptons season, which is characterized by the multitude of stories each mansion and their famous owners can tell, along with shocked brokers and bottom feeders.

But something more fundamental than prices has dropped with the times. The outrushing of money from the Hamptons, like the outflow of water from Georgica Pond when the coastal barrier has been breached, has left a stench, like pond-bottom muck, of fear, anger, and quiet desperation. Titans have been brought low, fortunes lost, a world transformed. And through that muck, curling around one Hampton estate after another, is the slithering trail of Bernie Madoff.

Congrats to the Friends of the High Line!

Yesterday we had the pleasure of witnessing the opening of the High Line and can’t stop thinking about how pleased and impressed we are that you pulled it off. Even the speeches were great! Congrats to the Friends of the High Line!

WE DID IT! HIGH LINE OPENS!

Earlier today we stood with Mayor Bloomberg, Speaker Quinn, Borough President Stringer, Congressman Nadler, and other leaders and supporters and cut the ribbon on the High Line, officially opening the first section to the public. This historic day is the culmination of ten years of advocacy, planning and construction, and we’re so grateful to everyone who has helped make this opening possible.

Slow season yields shorter rental terms

27 East looks at this rental season and the new trend of partial season rentals emerging from landlords who won’t lower their prices and potential tenants looking for vast discounts. Although the rental season got off to a slow start, brokers now claim activity is picking up.

Jay Flagg, managing broker at Prudential Douglas Elliman, said that thanks to the hectic May, his office has already booked more rental agreements in 2009 than it did in 2008, which was widely regarded as a strong rental season. But, like Mr. Manger, he said that the trend toward partial-season rentals means that far less money is actually changing hands in the transactions.

Pending home sales lunge forward in Northeast

The Star Ledger writes on the recent report on increased sales activity in the Northeast, the first year over year rise since August. Experts believe this will only pick up as first time buyers finalize purchases before the November 30th deadline for the $8,000 dollar tax credit.

It might be some months before this rise shows up in standard sales statistics because of the length of time it has been taking buyers, sellers and banks to close deals, Yun said. Short sales in particular, in which banks agree to let homeowners sell their house for less than the mortgage, can take many months.

Mint Condition, Low Miles

The New York Times observes the many reasons buyers are choosing nearly new buildings over brand new buildings. One of the main reasons is that many banks are not lending in buildings with less than 70% of the units sold, which includes numerous new developments.

Another is that they don’t have to worry if the sponsor is going to finish the job or start renting out unsold apartments. The buildings are also likely to have an observable community of neighbors; apartments with valuable custom upgrades like surround-sound wiring or $25,000 automated window shades; sellers who have more flexibility to negotiate than most developers; and a relative dearth of new-building kinks, including the torment of ongoing construction.

Hamptons Homes Drop Most Since Realtors Kept Records

Bloomberg reports on the Hamptons market, which has been particularly hard hit, with sales down 67% and median prices down almost 30% from a year ago.

The number of unsold homes in the Hamptons rose 15 percent to a record 1,673 in the first quarter from a year earlier, according to data compiled by New York-based appraiser Miller Samuel Inc. Sales have declined the most in the 27 years that broker Town & Country Real Estate has kept records for the Long Island beach towns about 100 miles east of Manhattan.