The luxury residential market in The Hamptons, a popular summer vacation destination for the rich and famous, closed out a lackluster decade in terms of pricing, according to a report out Thursday.



In the final quarter of last year, 223 luxury homes, which accounted for 10% of the overall market in the area, sold for an average price of $6.2 million. The number of sales was 7.2% higher compared to a decade ago, while average prices declined 7% from the same time 10 years ago, according to the Douglas Elliman report.



The median sales price was also down 2.6% in the same period of time, essentially close to what it was in 2010, right after the financial crisis. This measurement better reflects the market condition than the average price does, by reducing the impact of super-luxury transactions.



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“As a second-home market, The Hamptons took a back seat in the last decade as a result of a combination of unaffordability, less-robust Wall Street compensation and a peak of uncertainty,” said Jonathan Miller, author of the Douglas Elliman report and chief executive of real estate appraisal firm Miller Samuel.



A flood of spec homes and ultra-luxurious homes on the market also contributed to a downturn in pricing, according to the report. Compared to 2010, the listing inventory in the fourth quarter of 2019 increased 108% to 552 luxury homes. Buyers typically negotiated a 18% discount compared to a 11% discount in 2010.



Although the luxury market in the Hamptons has been steadily slowing down since the peak in 2014 and 2015, the decline accelerated over the last year. Compared to the fourth quarter of 2018, the median sales price decreased 17.4%, while the number of sales dropped 12.9%, according to the report.

