Dan's Papers - June 19, 2009

The North Fork has weathered the present economic downturn with amazing resiliency. In the first quarter of 2008, there were 69 total sales in the 15 villages that make up the North Fork, in 2009 there have been 63 so far, with actual sales increases for the first quarter of 2009 in Riverhead (19 to 23) and Mattituck (2 to 3). With a small decrease in median prices, out of all the other regions on the East End, this historic area with its amazing vineyards has stood tall, still attracting buyers looking for wonderful summer and year-round homes - moderately priced compared to the South Fork. In fact, the median price actually rose in seven of the 15 villages. In Riverhead, on 23 sales, the median went up $40,000 for the first quarter of 2009 ($265,000).

To more accurately gauge the state of the North Fork real estate market, a visit was paid to the Daniel Gale Sotheby's International Realty office in Cutchogue with two of the firm's senior vice presidents, Dougall C. Fraser, Jr. and Carol Tintle, who is also one of three owners of the firm. Noting the seriousness of market conditions for real estate in general, Tintle proclaimed that a home, "correctly priced, will sell because there are buyers." She noted that the firm is bullish on the North Fork, with over 35 licensed agents employed.

Even though the Cutchogue Office is only 2 .5 years-old, Tintle has been with Daniel Gale for over 32 years and is well-versed in real estate trends. Explaining that the North Fork is a "lifestyle" choice, as opposed to the South Fork, Fraser noted that on the North Fork you can still get, "a home with a dock on the water for under $1 million," adding that, "for blue collar workers or new families, there are beautiful homes available for just around $300,000."

Explaining that the North Fork is more of a year-round community than the South Fork, where Tintle resides, they both spoke glowingly of the strong value a North Fork home, attributing it to the make up of the population. A growing number of retirees and first-time home buyers are settling down with long time community members. There is more growth and less turnover than on the South Fork.

A new feature of Daniel Gale Sotheby's is the,"New Home Center," which is a showcase for newly constructed homes. Tintle said, "Some buyers want homes that have never been lived in before - we now highlight that market for their convenience." Fraser believes that the North Fork is more family oriented, with Peconic Bay being more child-friendly. He also stated that, unlike the South Fork with only one major road (Route 27) going east-west, the North Fork has three main roads stretching the whole way out east. He believes the restaurants are phenomenal and also more affordable. Taxes are also more moderate than on the South Fork.

As for the whole real estate market, both senior VPs see more stability coming into the marketplace on the North Fork. Tintle said, "More stability brings more confidence, and more confidence will eventually make prices stronger." Both Tintle and Fraser chuckled when asked about company founder, D. Kent Gale, now over 90-years-old and still "involved." Fraser said he admires Gale's ability to still have great "forward thinking." Gale must know about economic downturns, having founded the firm in 1922 before the great stock market crash of 1929 and the great depression that followed.

Fraser also pointed out that although the North Fork is more affordable, there still are many choice, high-end properties for sale. In fact, last year in the first quarter of 2008, a property in Peconic sold for $19.5 million. The highest price sale in the first quarter of 2009 was for a home sold at $1.51 million in Southold. Also, in terms of days on the market, in seven of the 15 villages, the number went down for the first quarter of 2009, with one home in Laurel selling and closing in 24 days. Baiting Hollow had more sales in the first quarter of 2009 than the same quarter of 2008, with its average days on the market going down from 117 to 86.

Due to some of this positive activity, Tintle and Fraser are becoming more optimistic daily. They are committed for the long term to their profession and keeping the business in the area. Tintle said the important factors to remember in keeping a business afloat in tough economic circumstances are, "First stability, second stability, and third stability and confidence."

Fraser agreed, adding that the firm has made a firm commitment to expand on the East End and the North Fork of Long Island. As a parting shot, Tintle said, "Even after 32 years in the business I still enjoy it and find it fast moving."