Hamptons Real Estate Q3 2025: The Luxury Surge Behind the Headline Drop

The Hamptons real estate market in Q3 2025 tells two stories. Headlines focus on a 5.5% median price decline. Smart money focuses on something else entirely: a 43% surge in eight-figure transactions. This divergence reveals a market recalibrating, not retreating.

According to Miller Samuel’s quarterly analysis for Douglas Elliman, the median sale price settled at $2.05 million—down from Q3 2024’s $2.17 million peak but still nearly double pre-pandemic levels. Meanwhile, the ultra-luxury segment posted its strongest quarter since 2021.

For buyers, sellers, and investors watching Hamptons real estate in Q3 2025, the surface-level numbers obscure the real action. Here’s what’s actually happening.

Hamptons Real Estate Q3 2025: Market Overview

The third quarter marked a transition period. After Q1 2025 shattered records—pushing the median above $2 million for the first time in history—the market absorbed that momentum through summer.

Transaction volume remained steady. Pricing softened slightly in the mid-market while accelerating at the top. This pattern mirrors what McKinsey’s luxury research identifies as “K-shaped recovery”—divergent performance across price segments.

Q3 2025 Executive Summary

Metric	Q3 2025	Q3 2024	Change
Median Sale Price	$2,050,000	$2,168,900	-5.5%
Average Sale Price	$3,450,000	$3,201,000	+7.8%
Days on Market	67	67	0%
Listing Inventory	1,026	892	+15.0%
Months of Supply	8.4	14.2	-40.8%

The Average vs. Median Divergence

Notice the split: median down 5.5%, average up 7.8%. This gap is the story. High-end sales pulled the average higher while more modest transactions—the “Hamptons middle” between $1M and $5M—set the median.

Jonathan Miller of Miller Samuel calls this “normalizing after runaway growth.” In practical terms, $2M-$4M buyers gained modest negotiating room. Trophy buyers at $10M+ found less leverage than expected.

Luxury Segment Analysis: Where the Money Moved

The ultra-luxury tier dominated Q3 2025. Transactions between $10 million and $20 million increased 43% year-over-year. Sales above $20 million grew 33%. This wasn’t scattered activity—it was concentrated buying by cash-heavy purchasers unfazed by rates.

Knight Frank’s 2025 Wealth Report notes that U.S. ultra-high-net-worth individuals increasingly view real estate as an inflation hedge. The Hamptons, with finite oceanfront inventory and Manhattan proximity, fits that thesis.

Luxury Tier Performance

Price Tier	Q3 2025 Sales	Q3 2024 Sales	YoY Change
Under $1 million	98	112	-12.5%
$1M – $5M (“Hamptons Middle”)	187	168	+11.3%
$5M – $10M	42	45	-6.7%
$10M – $20M	23	16	+43.8%
$20M+	8	6	+33.3%

Cash Buyer Dominance

Financing barely enters the conversation at these levels. In the $10M+ segment, cash purchases exceed 60% of transactions. Even in the broader market, all-cash deals represent roughly 34%—well above the national average of 28%.

As The Real Deal reports, Wall Street bonuses continue driving Hamptons demand. The “joined at the hip” relationship between finance compensation and East End real estate remains unbroken.

Neighborhood Breakdown: Where Values Held and Shifted

Not all Hamptons villages moved together. Sag Harbor emerged as Q3’s breakout performer. Southampton Village held premium pricing. Montauk offered relative entry points.

Understanding these micro-markets matters more than tracking headline numbers. A buyer in Water Mill faces different dynamics than one searching Westhampton Beach.

Village-by-Village Comparison

Village/Hamlet	Median Price	YoY Change	Avg Days on Market
Sagaponack	$7,400,000	+8.2%	54
East Hampton Village	$4,971,000	+3.1%	61
Southampton Village	$3,554,000	-2.4%	58
Sag Harbor	$2,850,000	+79.0%	42
Bridgehampton	$2,650,000	+5.6%	67
Water Mill	$2,400,000	+12.1%	52
Hampton Bays	$875,000	+12.8%	71
Montauk	$1,650,000	-4.1%	78

The Sag Harbor Phenomenon

Sag Harbor’s 79% median price jump demands explanation. According to Town & Country Real Estate’s Q3 report, the village saw transaction volume increase over 200% with total sales volume up 774%.

What’s driving it? Year-round appeal. Unlike purely seasonal villages, Sag Harbor maintains restaurant, retail, and cultural activity through winter. Buyers increasingly want homes they’ll use beyond August.

Inventory Dynamics: The Supply Equation

Listing inventory rose 15% year-over-year to 1,026 properties—the fifth consecutive quarter of expansion. However, this recovery is relative. Current inventory remains 46.5% below pre-pandemic norms and roughly 48% below 2017-2019 levels.

Realtor.com analysis attributes the gradual increase to pandemic-era buyers offloading properties as work-from-home arrangements evolve. Some Manhattan residents who purchased second homes in 2020-2021 are now returning to city-focused lifestyles.

Why Months of Supply Matters

Months of supply—how long it would take to sell all listed inventory at current pace—dropped from 14.2 to 8.4. Anything below 6 months signals a seller’s market. Between 6 and 9 months indicates balance. The Hamptons sits right at the inflection point.

For sellers, this means correctly priced properties still move. For buyers, it means negotiation room exists—particularly for homes needing renovation or sitting past 90 days.

What This Means: Market Outlook for Q4 2025

The Hamptons market enters Q4 2025 in a healthier position than headlines suggest. Record-low inventory is easing. Price growth has moderated from unsustainable pandemic peaks. Luxury demand remains robust.

For Sellers

Pricing strategy matters more than ever. Properties priced at or slightly below comparable sales move within 60 days. Overpriced listings sit. The days of aspirational pricing and bidding wars are over in most segments.

However, sellers holding trophy properties—oceanfront, village-adjacent, move-in ready above $10M—retain leverage. Inventory in this tier remains genuinely scarce.

For Buyers

The window for negotiation has opened. Properties on market beyond 90 days, homes requiring work, and mid-market inventory ($2M-$5M) offer the best opportunities since 2019.

Turnkey luxury remains competitive. As one broker noted in 27 East’s roundtable, “Savvy buyers know quality inventory moves fast.”

For Investors

Rental demand continues supporting investment returns, particularly in year-round villages like Sag Harbor. The combination of price stabilization and strong rental income makes 2025 a potential entry point for long-term holds.

Methodology & Data Sources

This report analyzes transaction data from Q3 2025 (July 1 – September 30) across the South Fork of Long Island, including Southampton, East Hampton, Sag Harbor, Bridgehampton, Montauk, and surrounding communities.

Primary Data Sources

• Miller Samuel Inc. — Quarterly market statistics for Douglas Elliman
• Town & Country Real Estate — Hamptons quarterly reports
• Corcoran Group — East End market analysis
• Suffolk County property transfer records

Supplementary Sources

• Knight Frank Wealth Report 2025
• National Association of Realtors
• Realtor.com Market Research

Definitions

• Median Sale Price: The middle value of all recorded sales, less susceptible to outlier influence than averages
• Days on Market: Calendar days from listing to accepted offer
• Hamptons Middle: Properties priced between $1 million and $5 million
• Luxury Segment: Properties listed at $5 million and above
• Ultra-Luxury: Properties listed at $10 million and above

Data current as of October 2025. Social Life Magazine publishes Hamptons market reports quarterly.