A Mixed Bag on Fire Island
Editors’ note: This article is a survey of rentals and sales across Fire Island. It doesn’t necessarily reflect the perspective of each agency on the beach.
Real estate brokers we spoke with along Fire Island agree the pattern of home rentals and sales has undergone an adjustment this year. Yet Fire Islanders have been spared the dramatic decrease in home values similar resort communities have experienced.
Each beach community has its own distinctive personality. And it is interesting to see how the recession has affected our rental and sales markets.
Rentals
Kitty King, a broker for Kitty King Real Estate in Dunewood, also reported early sluggishness. She added that, as a consequence, some homeowners in Dunewood, Fair Harbor and Lonelyville rented for shorter time periods and, in some instances, reduced their prices by as much as 25 percent.
Conversely, Laura Marvin-Smith of Fire Island Homes reported the rental market in Ocean Beach and the surrounding communities is booming. There are a few more houses available for short-term rental this season than seen in recent years, but those rentals tend to be strictly single family only. And those one-week rentals are finding tenants prepared to pay the full asking price
Brokers in Saltaire and other communities told the News many long-time seasonal tenants did not renew their leases last fall. Only a few of them returned this season for the entire summer. Several opted for shorter-term rentals; others are taking a hiatus from the beach. One local resident reported he felt Saltaire felt “particularly quiet this summer.”
Potential renters clogged real estate office phones this past spring with requests for week-long rentals that were frequently left unfilled. In Atlantique and surrounding areas, Pat Cherveny of Cherveny Real Estate said although the rental season began in April rather than January, almost all homeowners were able to find tenants. They rented for shorter periods of time and some lowered their prices.
Several long-time group rentals fell apart as various house members lost their jobs or simply held back to wait out the unstable economic times. New groups were slow to form, but they eventually did. And leases were signed.
Owners are increasingly recognizing home rental is a business. Tenants require satellite television, high-speed internet access, comfortable furnishings, pleasant house wares and clean, well-maintained houses. In Ocean Beach, permits are required, and strictly enforced. Now that shorter-term rentals have become more common, several landlords have begun to include barbeque grills, electricity, local telephone service and satellite charges in their rental prices. They are arranging for housekeeping services both at the beginning and at the end of the tenancy to assure the house is cleaned properly. These costs are being absorbed into rental prices and landlords are finding tenants respond well to this all-in-one pricing.
On the East End, rentals remain strong in both Cherry Grove and the Fire Island Pines in spite of the sluggish economy. Valerie Perez of A Summer Place in the Grove reported their seasonal rentals are “as strong as last year.” And their vacation rentals (one week or longer) are at the same level as they were in 2008.
Jon Wilner of Island Properties of the Pines echoed Perez’s sentiments.
“Rentals of course have been fabulous this summer and I expect renewals to remain strong and vibrant from what is beginning as our renewal season has just started,” he said.
Gervaise Baker-Miller of Carriage House Realty painted a far less rosy picture. She pointed to a number of Davis Park homeowners who have unsuccessfully tried to rent their homes this season. Baker-Miller further indicated rentals in Blue Point Beach and other communities in which she works have fallen between 10 and 20 percent.
“It really is a bad year,” Baker-Miller said. “The last four have been terrible over there, but this year is worse with the recession.”
She said prices are negotiable, but a lot of rentals remain available to those who may be interested.
Sales
Sam Wood told the News more people have begun to buy homes in Kismet.
“The community continues to prove itself as an up-and-coming town that is a great place for all,” he said.
There have already been two home sales in 2009, and several more contracts are pending. Fewer homes are available for sale in Kismet than were on the market at this time last year. Wood noted home sales are closing at “near asking level.”
King said sales prices in Fair Harbor, Dunewood, and Lonelyville currently range from $650,000 to $1,500,000; not so different from last year. Sales inventory has not increased and, although some asking prices are down five to 10 percent, there have been no distress sales. Owners continue to recognize the recession, but they are unwilling to consider further price reductions.
“[I]t is no secret that the real estate market is driven by the economy,” King said. “In good economic times the real estate prices are high; in bad economic times the prices are lower… but home prices were never dramatically inflated and minor decreases in prices are not extreme.”
Cherveny noted Atlantique’s sales market has been slow since last fall, but she added activity has increased this summer. A few more homes are on the market than there were at this time last year. And Cherveny said she feels now is the time to take advantage of any price concessions because they are “not going to last.”
Lonelyville and Robbins Rest present a similar demographic. The last home sale in the area was a small two bedroom house with a separate guest cottage that sold for $515,000. Cherveny remains optimistic.
“Everyone loves Lonelyville, Atlantique and Robbins Rest for their quiet and serene atmosphere,” she said. “The communities offer fewer amenities, so buying a house in this area, you get more for your money, a return to the low-keyed Fire Island of years past.”
Marvin-Smith, whose agency includes listings in Ocean Beach, Seaview, Ocean Bay Park, Corneille Estates, and Fire Island Summer Club said she is unaware of any foreclosures or fire sales on the beach. She recently sold one house in Ocean Beach and has another in contract. At least one other Ocean Beach home sold during the past few months, which is a not-unusual number for this point in the season. Marvin-Smith said the local market remains very active and she forecasts the usual surge of August offers and acceptances.
She further singled out Seaview and the Summer Club for what she described as a great deal of interest in the few new listings and an overall positive response. Marvin-Smith said her client base has remained stable and people who have explored her sales listings seem prepared to move forward with plans to purchase a home.
Perez said her agency has been “actively showing properties for sale” this summer. And Wilner added he has had more showings this month and in June than last year. He further indicated prices have held steady throughout 2009 in the Pines.
“There are fewer sales, but the prices have not dropped significantly,” Wilner said.
Baker-Miller said prices in Blue Point Beach, Davis Park and especially Water Island have not dropped enough to entice potential buyers. Her agency sold a home that had been listed at $699,000 for only $630,000. And another client in Water Island who is trying to sell two homes on the bay and ocean has not attracted any potential buyers.
“We’re getting calls for buying, but nobody’s bitten yet,” Baker-Miller said. “They’re waiting for a deal.”
Linda Cahill heads Barrier Beach Properties, Inc., a New York State licensed real estate firm serving Saltaire. Log onto www.barrierbeachproperties.com
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