Hampton Real Estate Takes a Hit; Luxury Builder Profits Fall
EAST HAMPTON, N.Y. -- The decline in real estate values is more deeply felt in some regions more than others, according to experts.
Certain counties in Nevada (Clark); California (Contra Costa and San Bernardino); and south Florida (Lee) may post higher foreclosure rates than the seemingly immune Manhattan, N.Y., market and environs. But even in Long Island's summer Mecca, the Hamptons, is now hurting.
Foreclosures are popping up far more often, according to a story in the New York Post last week that found that in the first three months of the year, banks launched preliminary foreclosure actions against a record 120 borrowers in the towns of East Hampton and Southampton towns. About 20% of those borrowers live in homes that are worth more than $1 million, according to figures from the Suffolk County clerk.
The news from Toll Brothers, a builder of luxury homes is bleak, too, as it reported a revenue drop of 30% for its fiscal second quarter. Headquartered in Horsham, Penn., Toll Brothers said that times were challenging as high-end home sales were soft in most markets nationwide.