Long Island home prices match record high in fourth quarter as listings plummet, report says
Long Island home prices matched a record high in the fourth quarter, with the number of properties for sale at the end of December dropping to the lowest point since at least 2003, according to data released Thursday.
The median sale price on Long Island, excluding the East End, rose to $700,000 in the fourth quarter, which was 10.2% higher than in the same quarter a year ago, according to a new report from real estate brokerage Douglas Elliman and appraisal firm Miller Samuel.
That price matched the record high for the region, which was set during the third quarter last year. The firms report home sales data for the Hamptons and North Fork separately from the rest of Long Island.
Ever since the COVID-19 pandemic led to a surge in demand for suburban homes, hopeful homebuyers have been waiting for prices to fall. The report Thursday signaled relief on prices may not be likely in 2025.
"I don’t think we know where the top is at this point," said Jonathan Miller, CEO of Miller Samuel.
In the Hamptons, the median price fell 5.4% to $1.75 million as the number of listings in the area grew compared with the previous year. On the North Fork, the median increased 2.6% to $999,999.
The number of listings on Long Island, excluding the East End, fell 14% to 3,235 to end the year, breaking the previous low set at the end of 2023.
Before the pandemic started, at the end of 2019, there were nearly three times as many homes on the market.
The record low is surprising given that a renewed surge in mortgage rates toward the end of the year made housing payments less affordable for homebuyers, Miller said.
Home prices have been resilient in the face of mortgage rates that have been consistently above 6% since September 2022, according to mortgage giant Freddie Mac. The average 30-year fixed rate rose slightly above 7% last week for the first time since May.
Higher mortgage rates mean fewer people qualify to buy, but homes on the market haven’t lingered, Miller said.
"Instead, what we saw is inventory plummet to a record low," he said.
That means sellers often have multiple offers to choose from. About 56% of deals in the fourth quarter sold for above asking price, which is an increase from 53% a year ago, Miller said.
"It’s supply and demand," said Todd Bourgard, CEO of Douglas Elliman for Long Island, the Hamptons and North Fork. "Right now, we have more buyers than we do sellers, and that being the case, we are seeing multiple offers and people driving the price up."
Fewer homes on the market and higher mortgage rates have led to fewer transactions. The number of sales in the fourth quarter fell 1.2% compared with the previous year to 5,392 on Long Island, excluding the East End.
"Sales are not sliding as much as inventory, and that’s why prices are at record levels," Miller said.
Rising prices and declining options have hurt morale among homebuyers, said Jared Garcia, associate broker at Weichert Realtors in Farmingdale.
He said there were 17 homes for sale in Farmingdale earlier this week. In a more robust market, 40 or 50 properties would be available, he estimated.
"A lot of [buyers] have been on and off shopping for years now. Every one of them are discouraged," Garcia said. "They’re making offers and they don’t feel confident. Even when they’re making aggressive offers, that doesn’t give you a guarantee that they’re going to get the house."
Meanwhile, despite their strong position in the market, it has been common for sellers to say they plan to stay put because they fear their future mortgage payment would be too high at today’s rates. Many owners have a mortgage rate around 3% that they're unwilling to give up, he said.
"There’s no appetite for them to really do anything," Garcia said. "The ones that have a lot of equity, and rates are not as sensitive for them, they don’t have anything to buy."
More homes have hit the market since the start of the year, said Elizabeth Byrne, a broker at Harms Real Estate in Rockville Centre, but sellers still have an opportunity to stand out amid a shortage of listings in the colder months.
"Gone are the days of wait until April to list your house — that spring market effect," Byrne said. "With so little inventory and the economy being robust, there's not a bad time."
Long Island home prices matched a record high in the fourth quarter, with the number of properties for sale at the end of December dropping to the lowest point since at least 2003, according to data released Thursday.
The median sale price on Long Island, excluding the East End, rose to $700,000 in the fourth quarter, which was 10.2% higher than in the same quarter a year ago, according to a new report from real estate brokerage Douglas Elliman and appraisal firm Miller Samuel.
That price matched the record high for the region, which was set during the third quarter last year. The firms report home sales data for the Hamptons and North Fork separately from the rest of Long Island.
Ever since the COVID-19 pandemic led to a surge in demand for suburban homes, hopeful homebuyers have been waiting for prices to fall. The report Thursday signaled relief on prices may not be likely in 2025.
"I don’t think we know where the top is at this point," said Jonathan Miller, CEO of Miller Samuel.
In the Hamptons, the median price fell 5.4% to $1.75 million as the number of listings in the area grew compared with the previous year. On the North Fork, the median increased 2.6% to $999,999.
The number of listings on Long Island, excluding the East End, fell 14% to 3,235 to end the year, breaking the previous low set at the end of 2023.
Before the pandemic started, at the end of 2019, there were nearly three times as many homes on the market.
The record low is surprising given that a renewed surge in mortgage rates toward the end of the year made housing payments less affordable for homebuyers, Miller said.
Home prices have been resilient in the face of mortgage rates that have been consistently above 6% since September 2022, according to mortgage giant Freddie Mac. The average 30-year fixed rate rose slightly above 7% last week for the first time since May.
Higher mortgage rates mean fewer people qualify to buy, but homes on the market haven’t lingered, Miller said.
"Instead, what we saw is inventory plummet to a record low," he said.
That means sellers often have multiple offers to choose from. About 56% of deals in the fourth quarter sold for above asking price, which is an increase from 53% a year ago, Miller said.
"It’s supply and demand," said Todd Bourgard, CEO of Douglas Elliman for Long Island, the Hamptons and North Fork. "Right now, we have more buyers than we do sellers, and that being the case, we are seeing multiple offers and people driving the price up."
Fewer homes on the market and higher mortgage rates have led to fewer transactions. The number of sales in the fourth quarter fell 1.2% compared with the previous year to 5,392 on Long Island, excluding the East End.
"Sales are not sliding as much as inventory, and that’s why prices are at record levels," Miller said.
Rising prices and declining options have hurt morale among homebuyers, said Jared Garcia, associate broker at Weichert Realtors in Farmingdale.
He said there were 17 homes for sale in Farmingdale earlier this week. In a more robust market, 40 or 50 properties would be available, he estimated.
"A lot of [buyers] have been on and off shopping for years now. Every one of them are discouraged," Garcia said. "They’re making offers and they don’t feel confident. Even when they’re making aggressive offers, that doesn’t give you a guarantee that they’re going to get the house."
Meanwhile, despite their strong position in the market, it has been common for sellers to say they plan to stay put because they fear their future mortgage payment would be too high at today’s rates. Many owners have a mortgage rate around 3% that they're unwilling to give up, he said.
"There’s no appetite for them to really do anything," Garcia said. "The ones that have a lot of equity, and rates are not as sensitive for them, they don’t have anything to buy."
More homes have hit the market since the start of the year, said Elizabeth Byrne, a broker at Harms Real Estate in Rockville Centre, but sellers still have an opportunity to stand out amid a shortage of listings in the colder months.
"Gone are the days of wait until April to list your house — that spring market effect," Byrne said. "With so little inventory and the economy being robust, there's not a bad time."
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
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