Long Island home sales rise as prices ease, inventory falls

Long Island’s housing market picked up speed in October even as prices finally took a small breather and the number of homes for sale shrank. For buyers and sellers across Nassau and Suffolk, it’s a market that’s active, competitive, and shaped more than ever by mortgage rates.

Sales are up — both month over month and year over year

Long Island saw 2,218 closed home sales in October across Nassau and Suffolk counties, according to OneKey MLS. That’s:

• 204 more sales than September
  
  

• 109 more sales than October 2024
  
  

Those numbers include single-family homes, condos, and co-ops, though Suffolk’s figures don’t capture every transaction on the East End.

In plain English: more homes are changing hands. Even with affordability challenges and limited options, buyers are still stepping up — especially as mortgage rates drift lower from last year’s peaks.

Inventory keeps shrinking, tightening the market

While sales rose, the number of homes available to buy moved in the opposite direction.

At the end of October, there were 5,783 Long Island homes listed for sale:

• 2,473 in Nassau
  
  

• 3,310 in Suffolk
  
  

That’s:

• 312 fewer homes on the market than the previous month
  
  

• Nearly 10% fewer listings than the 6,421 homes available at the end of October 2024
  
  

Lower inventory means buyers have fewer choices and more competition, especially for move-in-ready homes in popular school districts, near LIRR stations, or close to beaches and downtowns. For sellers, it’s still an advantage: well-priced homes are attracting strong interest and, in many cases, multiple offers.

Prices ease, but are still higher than last year

After a long stretch of steady price growth, October brought a bit of a cooldown — at least compared with September.

Nassau County: slight dip, still well above 2024

• October median price (single-family): $837,000
  
  

• September median price: $849,000
  
  

• October 2024 median price: $789,000
  
  

So while Nassau’s median slipped $12,000 from September, it’s still up 6.1% year over year.

For buyers, that small pullback can feel like a bit of relief. For sellers, it’s a reminder that values are still trending higher over the long term.

Suffolk County: prices cool but remain elevated

• October median price (single-family): $701,000
  
  

• September median price: $720,000
  
  

• October 2024 median price: $670,000
  
  

That means Suffolk’s median price was about $19,000 lower than September, but still 4.6% higher than October 2024.

Suffolk continues to draw buyers who want more space, a bit more yard, and relatively better affordability compared with Nassau — though “affordable” on Long Island is always relative.

Mortgage rates are edging lower — and that’s waking up buyers

Mortgage rates, which have been the main headwind for the housing market over the past couple of years, are finally moving in a friendlier direction.

• The average 30-year fixed rate in New York was around 6.19% as of Monday, according to Bankrate.
  
  

• That’s down from September and below the 2024 average of about 6.7%.
  
  

Looking ahead, Lawrence Yun, chief economist for the National Association of Realtors (NAR), expects mortgage rates to decline modestly, averaging around 6% next year. He doesn’t predict a dramatic drop, but a gradual easing that should help improve affordability.

“As we go into next year, the mortgage rate will be a little bit better… It’s not going to be a big decline, but it will be a modest decline that will improve affordability,” Yun said in a recent NAR statement.

Even small rate movements matter. A quarter-point drop can translate into real monthly savings and help more buyers qualify — especially in high-cost markets like Long Island.

What to expect heading into next year

Nationally, Yun projects existing home sales to rise by around 14% in 2026, with home prices expected to stay firm. He’s also forecasting:

• Home prices to increase about 4% next year nationwide
  
  

• Continued support from strong demand and limited supply
  
  

“Next year is really the year that we will see a measurable increase in sales,” Yun said. “Home prices nationwide are in no danger of declining.”

On Long Island, that likely translates into:

• More buyers re-entering the market as mortgage rates ease
  
  

• Persistent competition due to low inventory
  
  

• Prices that may wobble month to month, but continue trending upward over time
  
  

For buyers, the message is clear: if you’re waiting for a major price crash, the experts don’t see that happening. For sellers, we’re still in a solid environment — especially if your home is well-maintained and correctly priced.

FAQ: Long Island Housing Market 

1. Are Long Island home prices going up or down right now?
Prices dipped slightly from September but are still higher than they were in October 2024.

2. Is now a good time to buy a home on Long Island?
If you’re financially ready, easing mortgage rates and steady demand make it a reasonable time to buy despite tight inventory.

3. Why is housing inventory so low on Long Island?
Many owners are holding onto their low-rate mortgages, and strong buyer demand keeps new listings from building up.

4. Are mortgage rates expected to keep falling?
Most forecasts call for a modest decline, with average rates hovering around 6% next year.

5. Will Long Island home prices crash anytime soon?
Current projections point to stable or gradually rising prices, not a price crash.

6. Is it still a seller’s market on Long Island?
With inventory down nearly 10% year over year, sellers still hold a meaningful advantage in many areas.

7. How are Nassau and Suffolk home prices different?
Nassau’s median prices are higher overall, while Suffolk remains relatively more affordable but still up year over year.

8. What does rising home sales mean for buyers?
More closed sales signal active demand, so buyers should be prepared to act quickly and competitively on well-priced homes.

9. What should I do if I’m thinking of selling in the next year?
Start planning now with a local agent to time your listing, fine-tune pricing, and prep your home to stand out in a low-inventory market.