REAL ESTATE

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Word gets out so fast that Sagg Pond has already been nicknamed "On Goldman Pond," after so many Goldman Sachs heavy hitters (like Lloyd Blankfein) bought estates there, according to the New York Post's venerable "Page Six."

But with the Dow's chaotic, roller coaster of a ride this summer, the party may be winding down—at least for some. Investors flush with cash are already beginning to take advantage of foreclosures that are starting to pop up even in the tony Hamptons, which so far has been sheltered from the nation's sub-prime mortgage crisis, brokers say.

"There are some foreclosure auctions in the Hamptons and people should pay more attention to them," Turino advises. "This is an opportunity to avoid indifferent sellers and close a quick deal. They can be competitive, but that shouldn't prevent anyone from participating."

Adds Corcoran broker Gary DePersia: "If there are people who need to sell, there are plenty of people with cash to pick up the properties. As one of my clients says, 'When you're crying, you should be buying.' There are great buying opportunities out there."

DePersia believes there is a three- to six-month lag before the Hamptons real estate market "sees the result of a big jolt on Wall Street" or other areas of the economy.

Others, like Ackerman, say it takes up to 24 months before the results of Wall Street volatility are visible on the East End.

"We are in an unusual real estate market that parallels Manhattan in that it is driven by the financial community," Ackerman says. "If the financial market suffers, we feel it."

In that case, according to Ackerman, spec home builders will likely feel the pain first. "Spec homes will likely be sold at or below cost," he says.

Still, he adds, the ultra-high end homes are bought as trophies by people who so far have had the cash to back up their purchases and are not as affected by rising interest rates as first-time second-home buyers, who have just recently entered the under-$10 million market.