Dreaming of a Place in the Hamptons?

If you've always dreamed of owning oceanfront property in Long Island's posh community known as 'The Hamptons', the good news is, prices are down up to 40% from their 2007 peak.

The bad news is, you're still going to need millions to get in.

According to a recent MSNBC feature, sales of homes in The Hamptons are looking up a bit in recent months.

“Right now, it’s as if somebody opened a spigot,” says Manhattan attorney and Hamptons developer Alan Schnurman. “Everybody is out shopping and the game is how low can they (prices) go.”

Homes in the Hamptons that went for $12 million in 2007 are now on the market for $8 million, but buyers are still cagey, hoping to get in at that sweet spot just before prices begin to climb once again.

While New York has been hit hard by the financial crisis, the typical Hamptons customer is likely to still be in decent shape. Many have lost money in Bernard Madoff's ponzi investment scheme, and some have lost jobs in the financial industry, but when you're rich enough to purchase a multimillion dollar second home, even a loss of half your wealth still leaves you pretty damn rich.

This home in the Hamptons is available for rental from Memorial Day through Labor Day for $350,000.

The median price of a home in the Hamptons has fallen 24% from last year to around $675,000, while sales of homes in the area have plummeted 54% over the past twelve months.

It's the high end property that is getting all the recent attention though. Many people bought in high during the boom, when money was easy and Wall Street had full employment. Now, with the economic crisis in full swing, some of those newcomers are looking to get out no matter what the loss.

Record low interest rates don't hurt the market, and the fact that a luxury waterfront vacation home with ready access to New York City attracts international buyers is also a big help.

A summer rental in 'The Hamptons' can cost more than a year-round home in other parts of the U.S. For instance, the famous 'Grey Gables' estate that stands across the street from movie director Stephen Spielberg's Hampton estate is available for rent this year for the month of July for $200,000.

Real estate aficionado Steven Gaines, whose 1998 book Philistines at the Hedgerow: Passion and Property in the Hamptons is still a best-seller in Long Island bookstores, thinks the return of the uber-rich to the community is a positive sign.

“I think that flushing of people who really couldn’t afford to be here is actually a good thing,” he told an MSNBC reporter. “I think it keeps the elitism going, which is important to the community, because the community’s accessibility and its ubiquitousness hurt the Hamptons.”