Long Island home prices rise moderately in March over last year, hurting affordability for buyers

Long Island home prices rose moderately in March compared to last year while the volume of sales fell in both counties, with new data on the region’s real estate market pointing to sellers retaining negotiating power this spring.

The median sale price for single-family homes in Nassau County was $849,000 last month, or 4% higher than the same figure in March 2025. That was a slight decline from $850,000 in February, according to a new report released Tuesday by OneKey MLS showed.

In Suffolk, the median price rose 6.9% to $700,000 in March compared with the same month a year ago. Prices rose from February when the median was $685,000. The real estate industry often focuses on year-over-year price changes to account for the seasonal nature of home sales.

Meanwhile, the total number of closed sales on Long Island fell 8% year over year, with the harsh winter likely contributing to fewer deals, said Steven Kent, chief economist for the Long Island Association business group.

The decline mirrors a broader trend, with the National Association of Realtors reporting Monday that the number of home sales nationwide, excluding new construction, fell 1% last month compared with March 2025. 

"Lower consumer confidence and softer job growth continue to hold back buyers," Lawrence Yun, NAR's chief economist, said in a statement. 

On Long Island, steadily rising real estate prices over the past few years should be drawing more home sellers into the market, Kent said. But the region continues to struggle with a low inventory of homes for sale.

There were about 3,900 houses on the market on Long Island at the end of March, which was roughly 17% lower than at the same point in 2025. That was an improvement from February when the number of homes for sale hit its lowest point in at least a decade.

Mortgage rates have helped stall the market. The average rate on 30-year fixed mortgages rose from 6% at the beginning of March to nearly 6.5% by the end of the month, increasing the cost to borrow for a home purchase.

The combination of high home prices and rates has priced out first-time homebuyers and deterred existing homeowners from upgrading to a larger home because their monthly housing costs would rise steeply, Kent said. Some of those existing homeowners locked in mortgage rates around 3% when rates dropped to historic lows in 2021.

"There doesn’t seem to be any rush to people selling to lock in prices," he said.

While total sales volume was down, those sellers who entered the market received nearly full asking price in March, indicating the strength of sellers' position, said Richard Haggerty, CEO of OneKey MLS, the multiple listing service that covers Long Island. 

"What hasn't changed is buyer demand," he said. 

Some of those owners who are staying put are opting to take out renovation loans instead of purchasing elsewhere, said Robert Jayne, chief production officer, overseeing loan officers at Nationwide Mortgage Bankers in Melville.

With limited inventory, it’s important for house hunters to prepare before shopping and seek out a pre-approval commitment from their lenders that shows they have sufficient assets and income to buy a house at a certain price level, Jayne said.

"Rates are impacting affordability, but opportunity still exists for those who are prepared," Jayne said.

Cory Knopf, an associate real estate broker at Compass in Oceanside, said sellers have continued to command high prices despite some of the economic conditions affecting buyers.

"Even with the increase in the rates, even with the war, there’s still many more buyers than houses," she said.

She said she’s seen a strong improvement in listings over the past few weeks. For sellers, Knopf advises that small improvements, such as fresh paint and new flooring, can make a significant difference in attracting buyers. Houses that need significant repairs can often linger on the market, while a buyer scouts other options, but homeowners who make cosmetic upgrades see better results, she said.

"It’s a very different market if it’s a renovated house versus an unrenovated house," she said.