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Though the Federal Reserve began to cut interest rates in 2024, mortgage rates are about as high now as they were one year ago, meaning that expected relief for financing-dependent homebuyers has not materialized in a significant way. Still, home prices on the South Fork went up year-over-year, as inventory levels remain below the historical average, putting sellers at an advantage. To assess the state of the market last year, look ahead and share their takes on new trends, a group of Hamptons real estate professionals joined the East End Roundtable.
How did the 2024 market meet or defy your expectations?
Simon Harrison: As an election year the transaction velocity of 2024 was predictably off pace, and the golden handcuffs of some potential sellers locked into 3 percent mortgages did not help, including those hedging the flip side of that same coin by harvesting gains above that. I was not fully surprised, and remain hopeful that 2025 will improve.
Judi Desiderio: Last year was a byproduct of many extenuating factors. A contentious election, geopolitical tensions, inventory issues, inflation, interest rates, etc.
Michael Petersohn: Frankly, I was surprised at the lack of inventory. With the supply chain correcting and the prices for lumber, steel and energy all reverting to pre-COVID levels, I expected the market to be more active. Interest rates were the greatest issue for many. The trend was originally lower and we saw an uptick in activity and then it quickly reversed. Ambiguity about the election ended up being a concern for more than a few buyers.
Angela Boyer-Stump: Despite home sales being down across the country, I was very pleased to end the year on par with my performance in 2023. The luxury home market is complex, but many of my clients recognized that with uncertainty, there was opportunity. Overall, the year exceeded my expectations, and I anticipate that 2025 will be even better!
Kalen Raynor: The year 2024 exceeded my expectations. My agents not only secured exceptionally high selling prices for our sellers, but they also navigated the evolving real estate market, adapting to new laws and regulations. They worked tirelessly on behalf of their buyers, successfully guiding them through the changing landscape and securing outstanding deals. Overall, 2024 was a highly successful year in real estate.
Randi Ball: 2024 met my expectations for sure. Inventory started to trickle on the market and if priced correctly went into contract quickly.
Martha Gundersen: I think it was a more normal year with folks balancing what they could afford with high interest rates and the expectations that they would soon go lower. Because the inventory was very low, it was a good sellers’ market.
Barry McGovern: Heading into 2024, I expected a more balanced market, but what really stood out was how price sensitivity increased. Buyers became much more particular about value, and while demand remained strong, overpriced homes simply sat. I also anticipated that higher interest rates would put more downward pressure on prices, but the reality was that turnkey, well-located properties still commanded strong numbers. One thing that caught me off guard was how quickly some all-cash buyers jumped back into the market as soon as they sensed stability — many of them had been sitting on the sidelines in 2023, waiting for clarity.
John Frangeskos: 2024 had its challenges with rising interest rates and tight inventory, but it ended up being one of my best years yet. Q4 showed real strength, with sales up 25 percent YOY across the South Fork.
Aimee Fitzpatrick Martin: I never enter a year with any expectations as no one has a crystal ball in this business. 2024 certainly was a tumultuous year between an exhausting presidential campaign, wars raging in the Middle East and Ukraine, and the groundbreaking $418 million National Association of Realtors (NAR) settlement which ushered in sweeping changes to the real estate industry. Inventory remained low, mortgage rates never dropped to the levels we expected, and the stock market soared to all-time highs. At Saunders & Associates, our sales and market share increased — and we ended the year with more sale listings than any other brokerage firm in the Hamptons.
Did the mood shift once the 2024 election was over?
Simon Harrison: Pent-up demand loosened, yes, and the relief rally in equities that the election cycle was over helped both our buyers and our sellers.
Judi Desiderio: Just as with the stock market, the real estate market lit up.
Michael Petersohn: To a measure, yes. I had a few buyers who were very active in the late summer/early fall completely clam up. Others have expressed concern around tariffs. That said, I just put a new buyer into contract who said, “My desire to be here outweighed my concerns.”
Angela Boyer-Stump: I did not see an immediate shift, but I do feel as we wrap up January and pull into February, like in past years, we are busier. This is traditionally the start-up time for us.
Kalen Raynor: At this point, there is optimism that the new administration will introduce policies aimed at reducing interest rates, but only time will reveal the outcome.
Randi Ball: While I didn’t expect the election results to greatly impact my business I do think sellers and buyers have a bit more clarity what to expect financially from the next few years. The spin is positive for the real estate market.
Martha Gundersen: Before the election, buyers and sellers wanted to wait to see what would happen and how it would affect the real estate market. While we have not seen any big changes thus far, the general mood does seem optimistic with more buzz in the market.
Barry McGovern: Yes, absolutely. The uncertainty leading up to the election made a lot of buyers and sellers hit pause on making big decisions. Once the results were in, there was an almost immediate sense of relief, regardless of political stance — people just wanted clarity. We saw a noticeable increase in serious buyer inquiries right after the election, especially among high-net-worth buyers who had been holding off on making moves. The sense of paralysis faded, and while the market didn’t skyrocket, it definitely picked up momentum heading into year-end.
John Frangeskos: There is always a pause in an election year, and right after the election we typically see activity pick up, as we did this time. Buyers are encouraged by stock market gains and anticipated Wall Street bonuses. This positive momentum is expected to drive high-end sales in 2025.
Aimee Fitzpatrick Martin: Historically, home sales aren’t significantly impacted by an election year except in early November where there is a bit of a “wait and see” attitude. This year was no different. After the election, we had some of the usual holiday slow down but that didn’t stop my buyers from house hunting, putting in offers, or doing home inspections on Christmas Eve.
Will it be a seller’s market in 2025 or a buyer’s market?
Simon Harrison: I’m comfortable predicting a more balanced market than 2024 was, with us putting more deals together where everyone wins, which is the primary focus of our business model.
Judi Desiderio: Most likely more balanced than the past few years.
Michael Petersohn: It continues to be a sellers’ market. Inventory is currently about 1,200 units in the Hamptons (WHB to MTK). In 2020/2021 we reached a low of about 650 units and in 2019 we were at about 5,500 units. We are still seeing homes going to best and final or selling over asking prices.
Angela Boyer-Stump: So far, what we’re seeing suggests it will likely continue to be a seller’s market in 2025. I started the year with two bidding scenarios on different homes, indicating strong demand. If sellers price their homes right, they will sell quickly. We are seeing more buyers lean toward buyer-broker representation, which helps them gain an edge when submitting offers. With low inventory, having a seasoned agent to strategize and submit creative offers is crucial in a market still experiencing bidding wars.
Kalen Raynor: In my professional opinion, I believe the Hamptons will continue to be a strong seller’s market throughout 2025.
Randi Ball: Until inventory greatly replenishes from COVID sales we will continue to be a seller’s market out east.
Martha Gundersen: Some homes that did not sell in 2024 may come back on at slightly reduced asking prices to make a deal. However, inventory remains low, so it is still a seller’s market for homes that are priced correctly.
Barry McGovern: It really depends on interest rates and inventory levels. If rates come down even slightly, I think we could see a resurgence of buyers who have been waiting on the sidelines, which would favor sellers — especially in prime locations. However, if inventory continues to build, buyers will have more leverage, and pricing will have to adjust accordingly. I’d say 2025 is shaping up to be a more balanced market, where the well-priced, move-in-ready homes sell quickly, and overpriced listings sit.
John Frangeskos: New construction continues to be a significant factor in the overall Hamptons market. We have seen a rise in newly built homes, but inventory as a whole remains on the low side. This means the seller’s market that we are currently in will likely continue.
Aimee Fitzpatrick Martin: If January is any indication of what the 2025 market will be like, we’re off to a great start for both buyers and sellers. With inventory still low and home prices continuing to rise, sellers remain in a strong position to negotiate great prices for their homes. Both buyers and sellers have come to terms with mortgage rates and recognize that we’re not going to see the very low rates we enjoyed for many years. Sellers seem more willing to put their homes on the market so they can downsize, upsize, or relocate for their own needs. Buyers realize that prices aren’t dropping so they need to make a move if they find the right home.
Is AI helping to market and sell homes?
Simon Harrison: I’m glad you asked that question. AI is another tool at our disposal, and it picks up some of the joyless tasks, often stitched behind our existing robust stack of software suites. However, AI does not come with required character and integrity components, the same way the zilla-trilla sisters cannot fully see waterfront or highway frontage in their value estimates.
Judi Desiderio: While AI helps with marketing it doesn’t convince a seller to sell or a buyer to buy.
Michael Petersohn: I have not seen a change to the market structure thus far. I am sure it’s coming and we should all be aware but thus far not to my knowledge.
Angela Boyer-Stump: Yes, AI is definitely helping to market and sell homes. I use AI every day, and while it’s a learning curve, I’m enjoying the numerous ways it can make my life easier. Have to admit that having a young marketing team doesn’t hurt.
Kalen Raynor: AI represents the future, and there is no doubt that advancements in technology are empowering agents to more effectively market and sell homes.
Randi Ball: I am not seeing too much AI used in marketing and selling homes yet but will start dabbling at The Agency this year.
Barry McGovern: Yes, but it’s more of a support tool than a game-changer. AI is great for predicting market trends, optimizing digital ad targeting, and automating certain tasks like follow-ups and listing descriptions. It has helped streamline marketing efforts, but at the end of the day, Hamptons buyers expect a personalized, high-touch experience, which AI can’t fully replicate. Where I’ve really seen AI shine is in analyzing buyer behavior, helping fine-tune pricing strategies, and generating hyper-targeted ad campaigns to reach the right audience faster.
John Frangeskos: AI has become a tremendous tool to help market and sell homes. At Corcoran we are using an internal platform called Corcoran Copilot. It leverages AI to create search engine optimizations, listing descriptions and hashtags for social media to encourage maximum exposure. It is a game changer.
Aimee Fitzpatrick Martin: Whether we like it or not, AI is here to stay and playing an increasing role in real estate. For example, the new Matrix platform, which OneKey MLS uses as its primary listing management system, incorporates such AI-powered features as copywriting and video tools, social media content, and detailed metrics analysis. As a former newspaper reporter, I personally feel like it’s cheating to use AI to write my listing copy — but welcome all the market analysis information it can provide for my clients.
Has the NAR settlement changed how you do business?
Simon Harrison: No. Another great question. The way I see it the NAR is a union or trade organization for 1.5 million of 2 million licensed agents in the United States, and they were sued for violations of anti-trust legislation because they put up two distinct barriers to competition. The first was a requirement that agents be members of their “association” to distribute listings amongst professionals, the second was that they then required uniform listing paperwork, which effectively fixed brokerage fees and structure. It’s not surprising that the class action suits ensnared the large corporate brand brokerage firms, the franchises, and they all lost. As a local independent brokerage firm my reasoning has allowed me to feel vindicated and justified in rejecting the NAR’s advances all these years. At the same time, I continue to compete and cooperate with firms that are associated with the NAR, with minor paperwork changes.
Judi Desiderio: Actually nearly 100% of our sellers recognize the value selling agents bring to the table and therefore are offering buyer broker compensation in line with levels seen prior to the NAR settlement.
Michael Petersohn: Workflows are obviously a bit different. It’s important to remain on the right side of the rules, but the new disclosures often require some handholding. A few sellers have asked about commission structures and how to pay/not pay buyers’ agents. I recently reviewed all the homes available in East Hampton and of the 215 that were available all but eight were offering buyers’ agents’ commissions. The remaining were all “up island” agencies with little to no presence out east. These often don’t get the proper exposure and distribution and wither on the vine. There is a reason why buyers’ agents exist!
Kalen Raynor: The NAR settlement has undoubtedly transformed the way agents conduct business. These changes have introduced greater transparency for consumers, and I am incredibly proud of how my agents have been trained to navigate the evolving real estate landscape. This has further enhanced their professionalism, and it is essential for both buyers and sellers to ensure they are working with true professionals to guide them through this new environment.
Randi Ball: The NAR settlement has resulted in so much more paperwork to be signed and many conversations clearing up confusion. Other than this — business as usual!
Martha Gundersen: We always operated under strict professional guidelines. The new paperwork seems to be infinite for digital world! It has created a bit of confusion, but for an experienced broker it is not hard to navigate. Stick to ethics!
Barry McGovern: Not drastically, but it has definitely made conversations about commissions more transparent. The Hamptons has always operated a bit differently from traditional MLS-driven markets, so we weren’t hit as hard as other areas. That said, buyers are more aware of how commissions work, and I’ve had to have more in-depth discussions about representation and compensation structures. It hasn’t disrupted the market, but it has forced agents to be clearer about our value and how we work.
John Frangeskos: I pride myself on providing exceptional service to all my clients with excellent communication throughout the transaction and beyond. The NAR settlement doesn’t change the way I do my business, it just places some requirements that didn’t exist before.
Aimee Fitzpatrick Martin: To my surprise, some buyers are still unaware of the NAR settlement lawsuit and how it affects real estate compensation practices. As a broker, this provides me with a real opportunity to engage with a new buyer and educate them about the NAR settlement changes, how commissions are paid, and that they will need to sign a buyer broker agreement before I can show them any properties. In the Hamptons, I would say 99% of home sellers are still paying the buyer broker compensation because they recognize that buyers already pay a lot of closing costs with the 2.5% Peconic tax and 1% Mansion tax. Savvy sellers want to attract the largest pool of buyers to their listing — so it’s “business as usual” in the Hamptons.
Is the rising cost of homeowners insurance making it difficult to sell certain homes?
Simon Harrison: We are seeing property insurance slotted into umbrellas and portfolios, and the occasional “self insured” makes sense to some. Rising costs hamper sales, and that includes the availability as well as the dollar cost of all goods and services. Our understanding of various waterfront and historic district components helps right size the shifting values that make up the market.
Judi Desiderio: Not yet but let’s see what happens this year.
Michael Petersohn: Interesting. Selling homes the answer from me is no. I did have a chat with an owner today who has seen her rates double over the last two years. I suggested she speak to my broker as she had been with the same agency for many years. With the wildfires in California and the hurricanes in Florida I would expect we shall see a few more folks returning to the East Coast and the Hamptons in particular.
Angela Boyer-Stump: I’m not seeing the cost impact us directly, but factors like the age of a roof or FEMA regulations can make it harder to find an insurer.
Kalen Raynor: The cost of insurance is an important consideration for all buyers before making an offer on a property. Increases in premiums could impact a buyer’s mortgage qualification.
Randi Ball: Homeowners insurance — especially flood insurance — is getting more expensive and complicated but our local insurance companies such as Amaden Gay have been terrific in finding carriers.
Martha Gundersen: Yes, in some areas the cost of insurance has gone up and the availability is also harder. However, we are definitely in a safer and more secure area than others that have been hit much harder with rising costs. Insurance companies require home security systems and low temp alarms for insurance. We overall have been extremely fortunate here.
Barry McGovern: Absolutely. Insurance premiums, particularly for waterfront and older homes, have surged, and it’s something both buyers and sellers are paying closer attention to. I’ve seen deals fall apart when a buyer suddenly gets hit with a shockingly high insurance quote that adds thousands to their annual costs. Some sellers have started proactively securing insurance quotes and sharing them with buyers upfront, which helps manage expectations and avoid surprises. It’s an issue that’s not going away, especially with climate risks being factored into pricing more aggressively.
John Frangeskos: While a few insurance companies have exited the Hamptons market, the good news is there are still plenty of insurers to select from when shopping for home insurance. It has not made selling homes difficult.
Aimee Fitzpatrick Martin: I personally haven’t seen any indication of insurance affecting a buyer’s decision to consider a particular home. Buyers are more concerned about property taxes and that’s why Quogue, which is known for its very low taxes, is always appealing to buyers.
How is the summer 2025 rental reason shaping up?
Simon Harrison: It’s a little early to say, but we have had renewals engage already. As I write this it’s 22 degrees out, and we have five open houses this weekend — all for sale — but that’ll change shortly.
Judi Desiderio: We’ve been writing leases for this season since Q4 2024.
Michael Petersohn: It’s still early. Last year was slower than normal and scuttlebutt around the office is that it seems a bit busier so far. My repeat rental clients are all coming back but it does seem a little slower with new renters. Some have said we will have an influx of folks from California, but my guess is that won’t move the needle a whole lot.
Angela Boyer-Stump: The rental season is starting slow but is beginning to pick up. We have a lot of inventory, and the real telltale will be what happens around Presidents Day weekend. If we still have the same amount of inventory by then, owners will need to reassess their rental rates.
Kalen Raynor: We are starting to see an uptick in the summer rental market for 2025. Many homeowners who purchased second homes during the COVID period are now looking to rent, resulting in more inventory than in previous years. While this may create more competition for landlords, it also provides a wider range of excellent options for those seeking seasonal rentals.
Randi Ball: Rental season 2025 is off to a winning start. Prices are holding steady from last season but so far I see less rental properties available on the market. I think it will be a very busy summer so don’t wait too long!
Martha Gundersen: The 2025 rental season is very busy and active. In some areas, like in the oceanfront market, it is harder to find amazing homes for more than two weeks and prices have gone up. If you are open minded about location, there is plenty to choose from.
Barry McGovern: It’s a little early to call, but so far, renters are booking later than they used to. I’ve noticed more hesitation from some renters who are weighing their options — there’s more competition from alternative destinations like Europe or Palm Beach. That being said, high-end properties with great amenities are still securing strong numbers. Homes with private beach access, resort-style pools, and outdoor entertaining spaces are in demand, while mid-tier rentals may need to adjust pricing or offer incentives to fill up.
John Frangeskos: The high end of the luxury rental market is strong, with limited inventory and high demand. In fact, I have already facilitated multiple $200,000 plus per month rentals. The pace of the market has picked up as we are now heading into spring.
Aimee Fitzpatrick Martin: As soon as the summer of 2024 wrapped up, I found myself doing quite a few 2025 summer leases, many of them for repeat tenants or early bird renters who wanted to snatch up the best inventory. The holidays and that stretch of frigid temps slowed activity, but renters are out in full force now, realizing that the countdown to Memorial Day has started. While some new inventory is coming on the market, I caution prospective renters not to wait too long if they want to find a prime rental.
What’s an amenity that’s growing in popularity among buyers and renters?
Simon Harrison: Rentals where everything is included: utilities, pool cleaning, lawn mowing, even housecleaning. The landlords also like it as their vendors and service people simply remain in place, and they’re familiar with the grounds, and seamless makes for a great rental experience.
Judi Desiderio: All the amenities. Outdoor living spaces are key.
Michael Petersohn: Pickle ball. Outdoor kitchens. Home theaters/automation.
Angela Boyer-Stump: Pickleball courts are growing in popularity! While many believed it would be a fad, I think pickleball is here to stay. In our luxury vacation home market, many buyers and renters love the idea of having their own court.
Kalen Raynor: The most popular amenities currently trending include the ever-evolving smart home technology, luxury spa-inspired primary bathrooms, and expansive outdoor entertaining spaces. Recently, I’ve also noticed a rise in pet-friendly features, such as in-home dog washing stations.
Randi Ball: Home gyms and spas are the “new media theaters” when it comes to important amenities. We are also seeing an increase in requests for first-floor primary bedrooms in new constructions.
Martha Gundersen: Gyms and wellness areas like yoga or massage rooms, as well as steam and saunas are really having a moment, and well-designed home office spaces continue to be a draw.
Barry McGovern: Buyers and renters are prioritizing wellness-focused spaces more than ever. Home gyms and recovery rooms (with infrared saunas, cold plunges, or meditation spaces) are huge selling points right now. Also, high-end outdoor kitchens with pizza ovens, professional grills, and covered dining areas have become must-haves. Renters especially are looking for homes that provide a “resort-style” experience, so properties with private spa features, smart home automation, and hotel-level outdoor entertainment setups are commanding a premium.
John Frangeskos: Amenities growing in popularity center around outdoor living. We see more pickleball courts, tennis courts and outdoor kitchens. In nice weather, there’s nothing better than spending time outside under blue skies.
Aimee Fitzpatrick Martin: Some buyers are asking for environmentally friendly amenities like electric vehicle chargers. I’ve also noticed that buyers are drawn to homes with cozier separate spaces, a departure from the open floor plan concept which has been so popular for years. Pools, spas, and home offices remain in-demand amenities on a buyer’s “wish list.”
What was the most memorable transaction of 2024 for you?
Simon Harrison: We helped someone downsize their family home after three of their children graduated college, and the happy moment was they still needed space for their kids to visit, because they still do. The very definition of success …
Michael Petersohn: Hand-holding buyers from Tribeca through the process. They were going from house to house on their own, refusing buyer representation and kept missing trades. They would keep checking with me on pricing but continued moving along on their own. I never gave up and they eventually saw the value of having representation. They now have an idyllic home and a new friend. It was a journey.
Angela Boyer-Stump: There are two memorable transactions. Both involved agents from other offices who, after not being able to secure buyers for their sale listings, brought me in to assist with listing and marketing properties that had been on the market for quite some time. Together, we were able to find buyers and get the properties sold. I was grateful for the valued relationships with outside agents. These experiences not only added to my success in 2024 but also reminded me of how much I love my job and the agents I work with in the Hamptons.
Randi Ball: My most memorable transaction for 2024 was an off-market oceanfront in Amagansett. Absolutely stunning location.
Martha Gundersen: I would say it would have to be the sale of 9 Hither Lane in East Hampton. This home is a flawless combination of style, comfort, and location — built, and designed by the celebrated James Michael Howard. It was a real thrill to represent such a talented visionary in the sale, and to have a buyer who was a legendary figure.
Barry McGovern: One that really stands out was a deal where a buyer and seller were completely at odds for months. The home was a stunning oceanfront property, and while the buyer absolutely loved it, they were convinced it was overpriced. The seller, on the other hand, was emotionally attached and wouldn’t budge on their number. It took multiple rounds of negotiations, creative structuring, and a lot of patience to get it across the finish line. In the end, what made it so memorable wasn’t just that it closed, but that both sides felt like they won. The seller got a record-breaking number for the street, and the buyer ended up feeling like they made a smart long-term investment. Those are the deals I love — where both parties walk away happy, even after a tough negotiation.
John Frangeskos: Personally, my most memorable transaction of 2024 was putting the beautiful waterfront hotel at 16 Penny Lane in Hampton Bays into contract. This success helped me land yet another hotel exclusive listing.
Aimee Fitzpatrick Martin: It’s always special when you can be a catalyst in bringing the right players together in a real estate transaction. After working with a high-end client for quite some time, I kept bringing 45 Shinnecock Road in Quogue back to their attention because I knew its prime location, special views, and potential for them to build their dream home made this property “the one.” We patiently waited through several price adjustments and when the time and price was right, put in an offer. We ended up in a nail-biter of a bidding war but ultimately prevailed. I then recommended the best attorney and land use expert for the project and was able to convince the architect of my client’s choice (who also was a past client but not immediately available) to agree to take on this new project. It was a win-win all around.
