Rich And Famous New York Enclave Experiences Slump In Home Prices, Sales

New York City, NY (AHN) - Home prices and sales in the favorite summer hideaway of New York's rich and famous crowd plummeted in the first quarter of 2008.

According to a survey by appraisal company Miller Samuel, the median price of a Hampton home dipped by 7.1 percent to $882,500 while sales tumbled by 29 percent compared to the last quarter of 2007.

Jonathan Miller, chief executive officer of Miller Samuel, explained to Bloomberg, "There's caution because of more potential layoffs in the future, so people are taking longer to make buying decisions. We're seeing a sharp drop in sales transactions, which are likely influenced by the problems on Wall Street."

Finance companies in the Big Apple adversely affected by the subprime mortgage crisis have shed about 31,500 jobs in the last 10 months, according to Bloomberg.

Meanwhile, the four top Wall Street companies reduced by 23 percent their funds for employee compensation and benefits for January to March, causing the twin moves of a drop in demand for homes and slashing by home sellers of their asking prices.

The Hamptons are located on the east end of Long Island, near New York City