The inventory swelled 23.6 percent to 2,286 homes from 1,849 homes a year ago. The homes have spent an average of 156 days on the market compared to 140 days a year ago.
In the luxury home market (the top 10 percent of all sales), the median sales price dropped 9.4 percent to $3,996,500 from this time last year. During the second quarter, 14 units sold at or above $5 million compared to the 23 units last year. This number is still a huge increase from the 7 units sold during the prior quarter.
More Real Estate News from CNBC:
Unemployment needs to level off and begin to fall for the housing market to turn around, according to Miller. Additionally, credit needs to ease, he said.
"Essentially, lenders have pulled back from the market," Miller told CNBC. "Even though they are issuing mortgages, the terms are far more stringent and this has damaged markets around the country."
The New York state Labor Department reported that NYC's unemployment rate grew to 9.5 percent in June.
Miller said the recovery will begin first at the lower end of the market with the higher end listings following behind.
"Higher end pricing markets are more vulnerable," Miller said.
It will be another four years until the 584 high-end homes on the market in the Hamptons are sold if the present sale trends continue, according to estimates in a report by Bloomberg News. The report further said that the average luxury home seller has slashed prices an average of 20 percent in the second quarter compared to 5.6 percent this time last year.
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