By Phelan Wolf, Esq.
32 Wainscott Hollow Road, Wainscott, $1,830,000
This property located south of the highway in Wainscott and is approximately .5 acre with a very small cottage built in the 1950s.
Over the last few years, there has been a tremendous amount of building activity in the most desirable areas of the South Fork—in particular south of the highway on farmland between Wainscott and Water Mill—but not quite so much anywhere else. Building on the best, largest and most expensive lots started back up again almost immediately following the depths of the recession.
As we leave the recession behind, and the economy improves, we are seeing more building on a variety of properties. These types of properties now include locations north of the highway and on smaller lots south of the highway, such as this one.
This property is likely to be the site of a big new house built on speculation. Under present zoning it can accommodate an approximately 5,000-square-foot house with pool.
The recent transfer history of this property begins in 2002 when it sold for $200,000. It was flipped the next year for $440,000. Those sales were so low that they may not have been arms-length transactions—in fact one of them was among family members.
But most recently this property sold at the top of the market in 2006 for $1,948,000. The fact that this sale is around 6 percent lower than the 2006 price, rather than the 30- or 40-percent lower we have come to expect, shows the incredible resilience of properties in the best neighborhoods in the Hamptons.