Long Island Housing Market In Significant Decline of Available Homes; Levels Not Seen In Over Two Decades
BABYLON, NY – The Long Island housing market is experiencing a significant decline in available homes, reaching levels not seen in over two decades. In the fourth quarter of 2024, the inventory dropped to approximately 3,200 homes, marking the lowest point since 2003.
This scarcity has driven the median home price on Long Island to $700,000. Traditionally, higher interest rates lead to a decrease in home prices; however, the current low inventory has countered this trend, maintaining elevated property values.
The limited housing inventory is a nationwide issue, influenced by higher interest rates. Homeowners with existing mortgages at lower rates are hesitant to sell, contributing to the reduced number of homes on the market.
This trend is not isolated to Long Island but reflects a broader national pattern of tight housing markets and rising prices. The combination of limited supply and sustained demand continues to challenge prospective homebuyers.
The data was gathered by a Douglas Elliman Real Estate report for the fourth quarter of 2024.
Key insights from the report include:
Median Sales Price:
- The median sales price increased by 10.2% year-over-year to $700,000, setting a new record for the third consecutive quarter.
Sales Volume:
- There were 5,392 sales in the quarter, a slight decrease of 1.2% compared to the same period in the previous year.
Listing Inventory:
- The number of available homes for sale reached a record low, contributing to the competitive market conditions.
Days on Market:
- The average number of days a property remained on the market before sale decreased, indicating a faster-paced market.
Price Per Square Foot:
- The average price per square foot saw an upward trend, reflecting increased property valuations.
These factors collectively highlight a robust seller’s market on Long Island, characterized by high demand, limited supply, and rising property values.
Given these dynamics, Long Island real estate is expected to remain strong. However, potential buyers and sellers should stay informed about economic conditions and interest rate trends, as these factors can influence market trajectories.
