What was once a tented summer camp in Montauk is quickly becoming a billion-dollar estate.
Montauk Shores, a previously obscure collection of manufactured homes, or mobile homes, in a former blue-collar community on Long Island's East End, has long been known for its contradictory nature. . This is a site for mobile homes, some of which are not only owned by billionaires, but can sell for millions of dollars.
And in 2023, this seaside community has reached new heights. Since 2022, the average sales price, which was already in the $1 million range, has more than doubled.
It all started earlier this year. In February, the Post reported that the trailer sold off-market for a record $3.75 million. Unsurprisingly, Montauk Shores homeowners seem to be hooked on the fever of his rush for gold. Six months later, another home appeared with an asking price of $4.4 million. A month later, in September, another home there was listed for $3.6 million. Another residence will be built there by the end of November. put on the market The transaction price was $3.95 million, and according to property information portal Out East, it was last traded in May 2022 for $975,000. The latter property is listed by Betsy Cronley of the Corcoran Group, who also owns a two-bedroom, one-bathroom property elsewhere in Montauk Shores. $998,000.
These prices may not be as significant as others when compared to the notoriously expensive Hamptons housing market, but they are significant for this condo, which consists of much simpler homes.
Taking over a campground on DeForest Road in Ditch Plains in 1976, Montauk Shores became New York State's first mobile home park condominium. But with prices now reaching millions of dollars, this parcel of land represents some of the most expensive real estate Long Island has ever seen, with prices as high as $5,000 per square foot if trends continue. Values are debated.
There's a caveat to Montauk Shores' searing scenes, and the main price driver is that the old metaphor of “location, location, location” is the key to trading at these high prices. Montauk Shores oceanfront comes at a big premium. Not so much offshore.
In terms of completed sales, the sharp increase in average prices in 2023 is due to residential transactions in DeForest, a prime oceanfront location, which is driving up prices overall.
The average closing price in Montauk Shores in 2020 was $917,000 when six homes were sold, according to Corcoran data. Six more units were sold in 2021, and the price jumped to $1.18 million. In 2022, as the pandemic began to recede, only three homes found new owners, and the average price fell slightly to $1.11 million.
But in 2023, three sales also closed, and the average price jumped to an astonishing $2.5 million.
“For the past several years, prices per square foot in Montauk Shores have been among the highest in the Hamptons,” said James Keogh of Douglas Elliman's Atlantic team. “We’ve moved from the lowest levels in the last 10 years.”
Keogh delivered a record-breaking product in February that was sold off-market. It was an all-cash neighbor-to-neighbor transaction.
“We represented the purchaser of this record-breaking purchase,” Mr. Keogh said. “The buyer lived next door and wanted to upgrade. We just sold his house for about $2 million.”
This record-breaking sale was a hot topic among local residents and even among local real estate experts.
“It was a huge leap forward,” John D'Agostino of Martha Greene Real Estate LLC said of the deal. “But it's new and oceanfront. It made people sit up and take notice. But the values of all the units have steadily increased over the years.”
D'Agostino listed Unit 305, a 1,100-square-foot three-bedroom, two-bathroom residence at least two rows back from the beach (but still very accessible, but not oceanfront), for $3.95 million in September. did.
“My listing is a new sector and a completely new situation. It's something new brought in,” he said of prefabricated homes.
“We've seen the number of properties double across the Hamptons. Part of the problem is a lack of inventory,” D'Agostino added. “There aren't enough sellers because they can easily rent their properties. And there are plenty of buyers.”
Montauk Shores properties may use a condominium address at 100 Deforest Road, a coastal road. However, many homes are actually located in the back, far from coveted ocean views. It is still possible for him to find properties in Montauk Shores for less than $1 million. It could be one of those old trailers deep in an apartment building away from the sandy beach. Prices vary widely. It's not just about whether it's close to the Atlantic Ocean or whether it's a newer unit or an older type of trailer.
“Some sites are for owners, some are for lease,” D'Agostino said. “Owner maintenance costs are only $150 a month. But lease sites are thousands of dollars a month. And you can't rent them. There's a huge disconnect.”
“There are pros and cons to both. It all depends on what you use it for.”
Most people want a beach house in Montauk Shores. Especially when it comes to surfing. Although it's nothing to sniff at, Ditch Plains is home to what many consider to be some of the best surfing in the Northeast.
What could weaken the pricing is that the condo is not eligible for financing.
“All cash sales only are permitted,” D’Agostino added. “So the buyer base is somewhat limited. You have to want it first, but it's not for everyone. Then you have to have cash on hand. yeah.”
But it doesn't seem to be in short supply. Surfing industry CEOs are flocking to Montauk Shores, but none of them are struggling to make ends meet.
“Young money, young CEOs,” Keogh said of the new residents. “Outdoor He clearly has an appeal for young people with money who are looking for two things: activity and nightlife.”
For the latter, we can thank East End party spot Surf Lodge. (“That’s true,” Keogh admitted.)
“Ditch Plains is the biggest draw,” he continued. “There's a special niche in the Hamptons, and that's the surfer niche. People from Brooklyn, Manhattan, and even overseas want to buy a front-row home with access to the surf.
Although D'Agostino's stock has remained listed since September, sellers are unlikely to lower prices and will wait for a spring rally, he said.
“It's usually bright this time of year. The market slows down. It's starting to get cold in Montauk. They'll probably wait to see what opportunities spring offers,” D'Agostino said. Told.
What will happen in 2024?
“Many of the prices you see in Montauk Shores are ambitious. But we got an incredible $2 million for a trailer,” Keogh said. “So you never know.”