The Hamptons Market Defies Expectations: Insights from Terry S. Cohen

Written by:

Steve Marcinuk

Date:

26 May 2025

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Despite economic uncertainties and recent market volatility, the Hamptons continues to demonstrate remarkable resilience, with high-end properties moving quickly and often generating multiple offers. Terry S. Cohen, a 25-year veteran of the Hamptons real estate scene who sells properties ranging from $3 million to $100 million, offers a unique perspective on why this exclusive market remains a compelling investment.

“When things get a little shaky, sometimes we see real strength here,” says Cohen, Partner and Licensed Real Estate Salesperson at Hedgerow Exclusive Properties, describing the current state of the Hamptons luxury real estate market.

Defying Economic Headwinds with Luxury Transactions

The Hamptons market is showing surprising strength at a time when many would expect caution. “The market as a whole right now is very strong,” Cohen explains. “I put something on the market that was $41.9 million, and we already have contracts that will probably be signed by the end of the week, in three weeks.”

This isn’t an isolated case. Cohen points to several recent high-value transactions: “In the recent two weeks we had a $32 million, a $28 million, a $40 million, a $70 million bidding wars. Those are all in the ocean or waterfront properties.”

Even more telling is that this activity has continued despite recent market turbulence. “Even after the trade scares and all that, in the last two weeks, we’ve seen a number of significant transactions,” Cohen notes.

The strength extends beyond ultra-luxury waterfront properties. “We had bidding wars on a land value piece between five and eight [million] in the Bridgehampton area south and Bridge Hampton north. We had quite a few trades already, couple full retail and a couple of value trades.”

Why the Mortgage Rate Lock-In Effect Doesn’t Apply

While many markets across the country are experiencing a “lock-in effect” where homeowners are reluctant to sell due to their favorable mortgage rates, this phenomenon has less impact in the Hamptons’ high-end market.

“I think on some properties that is a consideration, but we’re dealing with high numbers here. It’s less a factor,” Cohen explains. She acknowledges the reality from personal experience: “We have a mortgage on our house, it’s 2%, which is crazy. And I would have to think really hard… that would definitely be a factor for somebody that isn’t in that next category up.”

This suggests that while the mortgage lock-in effect is real, it primarily impacts the lower and middle segments of the market rather than the ultra-luxury properties that frequently change hands in the Hamptons.

Natural Transitions Driving Sales

When asked about who’s selling in the current market, Cohen points to natural life transitions: “I think there’s always a natural flow in and out of here. Some people, particularly those with oceanfront properties that recently sold, were simply at a point where it was time. They’re older and they’re moving on.”

Downsizing appears to be a common motivation among sellers of larger properties: “The big ones that traded are wanted to downsize… all of them were either estates or, you know, time to go or downsize.”

The New York-Florida-Hamptons Connection

Unlike some luxury markets that have seen significant shifts in buyer demographics, the Hamptons remains primarily driven by New York buyers.

“We’re not Florida,” Cohen explains. “Florida has a very broadly multinational market. It’s much more international than we have. We certainly have a mix of people, but it’s still coming from basically New York, a little bit of LA is coming, but it’s mostly still New York based.”

Interestingly, Cohen notes a symbiotic relationship between the Florida and Hamptons markets: “There’s a lot of New York people who move to Florida and their primary homes are in Florida, and what they’ll have is a little place in New York City, but they don’t want to be in Florida in the summer, so they have a summer home here.”

This creates a unique dynamic: “The Florida market has actually kept us steady, or helped us, because if you want to keep an East Coast connection… you’re not going to have it in Florida. You got to have it in the Hamptons.”

The Strategic Advantage of Off-Market Listings

Hedgerow Exclusive Properties has built part of its reputation on handling off-market transactions, a practice facilitated by the Hamptons’ unique listing environment. “We don’t have an MLS system here,” Cohen explains. “We have something called EELI which is a listing system that was created just for us, which is nice, so we’re not bound by certain things.”

This flexibility allows for strategic approaches to marketing properties. “I think it’s a great method to have off markets. I think it’s a great method to have a no-pricing strategy,” Cohen says. “It’s really price discovery. So if you have a property and you kind of whisper it around for a month, you’ll get some offers, and it’ll kind of give you an idea of where you can price it.”

This approach is particularly valuable in the Hamptons, where properties tend to be highly unique: “Every property here is very unique, more unique than other places. You’ll have a 10-acre piece with this, and how rare is that? Or you’ll have something on the ocean that is amazing buildability, or something that you can’t build as much.”

Market Intelligence as the Ultimate Competitive Edge

When asked about Hedgerow’s competitive advantage, Cohen emphasizes the importance of market intelligence and communication: “We’re very good at communicating with the market, and I think that’s what this is all about. Whether it’s at Hedgerow or not, it’s just who I am.”

This communication creates a virtuous cycle: “People tell us things before things go on market. If we tell them things before they go on market, we ask opinions… We have a lot of conversations, and we get intelligence. And people like that, and they know that we have a lot of intelligence, so therefore more people call. We get more intelligence, more people call, and that’s just good brokering and smart business.”

Hard Assets in Uncertain Times

Cohen speculates that the current strength in the Hamptons market may be partly driven by investors seeking stability in hard assets during uncertain economic times: “I’m not sure if people are going to feel that the markets are going to be as consistent as they were, the returns. And maybe that’s a reason why we’re seeing many people jumping into a hard asset.”

This trend extends beyond individual homebuyers to developers and investors: “The Hamptons market’s a great place to put your money. There’s a lot of builders back in, a lot of investors back in. It’s a great place to invest. It’s high in, but it’s high out. So it’s not for the weak of heart.”

A Promising Summer Season Ahead

While Cohen is cautious about making long-term predictions in today’s volatile environment—”the world’s material right now”—she remains optimistic about the immediate future based on current activity levels.

“I feel strong about how things are going. I have people coming out. Most of the people aren’t out yet. They come out more in July. And we’ve had a lot of buys already for this month,” she notes. “If you could look at the trades, it’s quite amazing. And our market really won’t even start until July.”