Hamptons relatively unfazed by weak economy

Moving to the Hamptons remains as popular as ever, possibly a sign that the nation's wealthy elite can afford to adjust to the changing market better than most.

Homebuyers in the posh Long Island region have the financial backing to better adapt to home price fluctuations, reported Reuters. Home prices in the Hamptons plummeted 20 percent at the start of the nation's financial meltdown in September 2008, but they've recovered somewhat and reached some level of stabilization in recent months. While many buyers are moving into new homes at a discount, they're still paying exorbitant prices that average buyers can't normally afford, said the report.

"There's not a lot of fear among our buyers right now," Pamela Liebman, president of the Corcoran group, told Reuters. The only thing holding the market back in the Hamptons is that there are few buyers who can afford moving into the area's multi-million dollar homes by paying cash.

Similar trends have been seen in other high-end New York markets. Landlords in Manhattan told the Wall Street Journal that despite falling sales nationwide after the expiration of the homebuyer tax credit, people were still moving into Manhattan condominiums at a high rate because the credit did little to appeal to wealthy buyers in the first place.
 

More News