Homes for sale in Water Mill

About Water Mill

Real Estate Market Analysis in Water Mill, New York (May 2026) Introduction This report presents a comprehensive analysis of the real estate market in Water Mill, New York, focusing on price trends, inventory, and the luxury sector landscape, using data updated through May 2026. Water Mill, a coveted area in the Hamptons, continues to be a focal point for high-end buyers and investors. Sales Market The sales market in Water Mill has demonstrated volatility and resilience. In February 2026, home prices in Water Mill recorded a 45.9% decrease compared to the previous year, with a median sale price of $6.3 million. However, the individual sale price showed an 11.5% increase compared to the previous year. In April 2026, the median listing price was $5,495,000, a slight decrease from $5,750,000 in 2025, and the market was considered favorable to sellers. More recent data from March 2026 indicates that the average home value in Water Mill was $4,576,621, representing a 6.1% increase compared to the previous year. The Douglas Elliman report for Q4 2025 revealed that the median sale price in Water Mill was $2,400,000, a significant drop of 60.3% compared to Q4 2024. The number of sales increased by 17.4%, totaling 27 transactions, and the listing inventory was 94, with 10.4 months of supply. Currently, there are 94 properties for sale in Water Mill, with prices ranging from approximately $1.25 million to over $32.5 million, reflecting the luxury nature of the market. Rental Market The rental market in Water Mill also exhibits high-value characteristics. In March 2026, the average rent in Water Mill was $70,000 per month. Other sources indicate an average rent of $66,666 and a median rent of $45,000 in April 2026. Realtor.com reports a median rent of $95,000 per month. For summer rentals in the Hamptons in 2026, there was an increase in inventory and a price drop of 15-25% from peak levels, although competition for prime properties remains high. Luxury Market Water Mill is a predominantly luxury market. The Douglas Elliman report for Q4 2025 highlighted that, for the Hamptons luxury market, the average sale price was $14,921,563 (+34.3% YOY) and the median sale price was $11,400,000 (+10.1% YOY). The number of luxury sales was 48, with 16.4 months of supply. Conclusion The real estate market in Water Mill, NY, in May 2026, is characterized by high prices and an inventory that, while having seen some fluctuations, remains robust, especially in the luxury segment. The percentage drop in median sale prices in some analyses may indicate a correction after previous peaks, while the increase in the number of sales and average home values suggests continued demand. The rental market also reflects the exclusivity of the region, with values significantly above the national average.