Long Island is strongest seller's market in U.S., Redfin data shows

Long Island was identified by Redfin as the strongest seller's market in the United States in November, when the brokerage reported there were about 39.1% fewer home sellers than buyers there.

In the Nassau County Metro area, which by Redfin's definition includes both Nassau and Suffolk counties, Redfin estimates show there are about 12,000 people looking to buy a home, but just 7,400 selling one.

"That leads to prices increasing, which, if you're a homeowner, maybe you're glad that your home values are going up," said Redfin Chief Economist Daryl Fairweather. "Or maybe you're upset that your property taxes might be going up."

For a home seller, she said, "it's great; unless you want to buy again."

Sellers who then enter the Long Island buying pool are up against the same competition as buyers, she explained. 

Nationally, the imbalance is flipped: the overall market had approximately 37.2% more sellers than buyers during the same time period, making it a buyer's market, according to the December report. Redfin terms the landscape a buyer's market when sellers outnumber buyers by more than 10%, and vice versa.

Buyers are looking longer, and taking their time to find what they really want.

— Carlene Calabrese, Realty Connect USA agent

"There are fewer sellers on Long Island than buyers," said Babylon-based real estate agent Carlene Calabrese. "However, houses are staying on the market a little bit longer than we're used to having, especially during the pandemic when I was selling houses in like three days."

Prospective home buyers on Long Island are more discerning, continuing to search for a home instead of "jumping at the first thing," said Calabrese, of Realty Connect USA.

"Buyers are looking longer, and taking their time to find what they really want," Calabrese said. "I feel like that is the general consensus right now."

In Port Washington, real estate agent Beth Catrone said she noticed an uptick in her own business in December that has continued into January. 

"I'm seeing shortage of homes; I'm seeing this pent up demand," said Catrone, of Daniel Gale Sotheby's International Realty. "October and November did not feel like this to me."

Catrone described her local market as "very highly competitive." Her clients looking to buy have been competing with others and finding themselves outbid, she said.

"Going over the asking price, and having wonderful terms is not even enough," Catrone said. "It's hard for buyers."

As a Douglas Elliman agent who sells on Long Island's North Shore, Maria Babaev said she attributes steady demand to lifestyle appeal, proximity to New York City and long-term value.

"There's a lot of buyers really moving to Long Island to seek better opportunities for their families, better environment, great, award-winning school districts," Babaev said. "And, while Redfin groups Nassau and Suffolk together, I strongly believe that the trend is especially pronounced in the prime Nassau County and North Shore villages; and then of course it kind of echoes through the entire Long Island."

In "established, high demand" North Shore areas — Roslyn, Old Westbury, Brookville — homes that are priced properly and presented well "really command strong interest from potential buyers," she said.

The market is no longer experiencing frenzied behavior or dramatic bidding wars, she said, but homes that are "priced smart" are moving quickly. 

Late last year, Fairweather told Newsday that homebuyer demand had outpaced new construction on Long Island. She cited a strong local job market and proximity to New York City as factors that drove buyer demand.

"Most markets across the country have turned into buyer's markets, which is a shift from what the housing market looked like during the pandemic and even before the pandemic," Fairweather told Newsday in the fall. "The places that turned into buyer's markets are places where there was a lot of new construction during the pandemic. There wasn't as much new construction in the Northeast and Midwest."