Thanks to the Miller Samuel people and Prudential Real Estate, we have a very concise and graphic way to tell the story of Hamptons real estate since the turn of the millenium. Basically, as you can see from the graph, the number of sales as well as the average sales price marched upwards in a sustained and rather manageable fashion from 2000 to 2005. At that point the true pricing bubble (shall we call it "irrational exuberance") took hold and while the number of sales declined, the pricing skyrocketed for another two years or so, until the whole thing collapsed along with the rest of the economy in '08. The last two years have seen very low levels of activity and declining prices which have combined to create a weak buyer's market in general, albeit with pockets of some strength. There are some indications that the market has hit bottom and is beginning to strengthen although it is a slow and tenuous rebuilding process, to be sure.
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