Finding a home for sale on Long Island has become increasingly difficult, with the housing market tighter than it has been in decades. Buyers must act quickly, as competition is fierce and inventory is at historic lows. Experts say this trend is driven by simple economics—high demand and a shrinking supply of homes.
Why Is Long Island’s Housing Market So Competitive?
William Levin, a broker with ReMax City Square in East Meadow, advises buyers to move fast if they find a home they like.
“Chances are if it’s a nice property, it’s not going to be there a week from now,” Levin said. “Once a listing hits the market, you usually have a bidding war if it’s priced right.”
The latest Elliman Real Estate report reveals that in the last quarter of 2024, only about 3,200 homes were available on Long Island. This is the lowest inventory since 2003. With fewer homes for sale and high demand, bidding wars have become the norm, driving prices up.
Home Prices Reach Record Highs
As a result of the tight market, home prices have skyrocketed. The median home price on Long Island has now reached $700,000, making it harder for many buyers to afford a home.
Jonathan Miller, the author of the Elliman Report, explains:
“What you’re seeing is record prices, and supply or choices for consumers being very limited.”
How Interest Rates Are Affecting Home Sales
This inventory shortage is not just a local issue but a nationwide problem. Miller says that higher mortgage interest rates have made it even harder for people to sell their homes.
Many homeowners locked in mortgage rates of 3% or 4% years ago and are now reluctant to sell because current interest rates are significantly higher. Typically, when interest rates rise, home prices drop—but this time, the lack of available homes has kept prices high.
“I’ve been doing this for 40 years and have never seen a phenomenon like this that’s this extreme,” Miller said.
No End in Sight for High Prices and Low Inventory
For buyers hoping that prices will drop soon, experts suggest they shouldn’t expect relief anytime soon. The ongoing imbalance between buyers and sellers continues to push prices higher.
“You do want to have more of a balance of sellers looking to sell, and buyers looking to buy,” Miller said. However, at the moment, the market remains heavily tilted in favor of sellers.
Long Island’s housing market is facing record-high prices due to low inventory and high demand. With only 3,200 homes for sale, competition among buyers is fierce, leading to bidding wars and skyrocketing prices. Higher mortgage rates have discouraged homeowners from selling, further worsening the shortage.
Experts believe this housing crisis will persist, making it difficult for buyers to find affordable homes. Unless more homes enter the market, prices are expected to remain high with no immediate solution in sight.
