- U.S. existing home sales have suffered a precipitous decline, driven lower by higher interest rates and a lack of supply
- The Hamptons real estate market has remained largely unscathed, with median home sales prices over 65% higher than those achieved in 2019
- Mountain Top Properties have looked to capitalize on the seaside enclave’s historic popularity through the launch of its dedicated Mountain Top Capital Fund I
- In partnership with Joseph Kelley’s On Site Builder Construction, the fund is looking to raise up to $75 million to construct and sell a range of finished, turnkey properties located across Long Island’s East End
U.S. existing home sales dropped to their lowest level in over 13 years in October, dragged lower by the highest mortgage rates in two decades whilst a dearth of housing supply also barred buyers from entering the market. A large factor behind the drop in property market transactions can be attributed to higher interest rates; the average rate for 30-year fixed-rate mortgages averaged 7.31% towards the end of September, prior to peaking at 7.79% in late October – the highest level since November 2020.
“The combination of high prices, high mortgage rates, and millions of homeowners unwilling to move, given they’ve locked in low rates, has frozen the market,” said Robert Frick, corporate economist at Navy Federal Credit Union in Vienna, Virginia (https://nnw.fm/XeBiP).
Despite moderating trends across much of the United States’ real estate market, the Hamptons has largely emerged unscathed. Historically perceived as a luxury seasonal market, characterized by a significant number of ‘second homes’ and a surfeit of cash buyers, the East End of Long Island has come to be renowned for its property market’s relative immunity to cyclical trends elsewhere in the nation.
Whilst the Covid years of 2020 and 2021 broke all records – in 2020, over $8.1 billion worth of real estate was transacted in the Hamptons, nearly twice the total of the previous year – the area’s property sector has remained relatively stable in its wake.
“[Whilst median home sales prices in the Hamptons have seen] a slight dip of 7.75% to $1,637,500 for this year — YET — that’s a BIG YET — looking back at our 2019 Mid-Year Report and we see the Median Home Sales Price was $995,000,” remarked Judi Desiderio, CEO of Town & Country Real Estate in reference to the property prices in the popular seaside enclave, which currently trade at an average 65% premium to its pre-Covid averages (https://nnw.fm/bBlHH).
It is this evergreen popularity which Mountain Top Properties (OTC: MTPP), a diversified real estate holding company focused around acquiring, marketing and operating assets through its wholly owned affiliates, have sought to capitalize upon. Group subsidiary, Mountain Top Realty Inc. have sought to gain share within the Hampton’s real-estate market through the provision of finished, turnkey properties – a marked contrast to the Hampton’s historical affinity for one-off, customized home sales.
Through its Mountain Top Capital Fund I, Mountain Top Realty has sought to raise $75 million to acquire, build, renovate and remarket homes in the Hamptons; thus far, the fund has already received debt capital commitments amounting to 70 percent of their anticipated real estate acquisition costs as well as a further 100 percent of the planned construction costs – and will look to deploy $10 million soon to leverage strategic waterfront opportunities within the exclusive enclave.
More critically, Mountain Top Realty has entered partnership with On Site Builder Construction, who will spearhead the design and construction aspects of the ambitious project. Helmed by Hamptons real-estate market stalwart, Joseph Kelley, the real estate firm have designed and built some of the Hamptons’ flagship properties over the past four decades – including the construction of the region’s most expensive properties in 2019 and 2022.
Targeting a minimum ROI of 20 to 30 percent per transaction, Mountain Top Properties eventually anticipates translating its experience and expertise within the Hamptons’ competitive property market to other high-end real estate markets through future dedicated funds.
For more information, visit the company’s website at www.Mountain-Top-Properties.com.
NOTE TO INVESTORS: The latest news and updates relating to MTPP are available in the company’s newsroom at https://nnw.fm/MTPP
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