Why Long Island's Housing Market Is on Fire Right Now

Market Update

June 04, 2025

If you’ve been house hunting on Long Island lately, you already know — it’s rough out there.

Listings are disappearing faster than ever, bidding wars are the norm, and buyers are being forced to make lightning-fast decisions. So what’s really behind this red-hot real estate market?

The answer comes down to one word: inventory — or rather, the lack of it.

According to the Elliman Report, only around 3,200 homes were listed for sale across Long Island in the final quarter of 2024 — the lowest level in over 20 years.

At the same time, demand hasn’t gone anywhere. The result? Sky-high competition and skyrocketing prices, with the median home now hitting $700,000.

Here’s the kicker: normally, rising interest rates would cool the market by softening demand. But that’s not happening here. Why?

Because homeowners with mortgage rates locked in at 3–4% aren’t selling. They’re staying put, unwilling to trade up and take on a new loan with much higher rates.

So instead of more homes hitting the market, we’ve got fewer — and that’s fueling this frenzy.

Brokers on the ground, like William Levin at ReMax City Square, are seeing it firsthand: the moment a decently priced home hits the market, the offers start rolling in.

And if you hesitate? Someone else scoops it up.

This isn’t just a Long Island issue — it’s a national one. But here in the suburbs of NYC, where space and schools are still a big draw, the pressure is even more intense.

And unfortunately, there’s no quick fix on the horizon.

If you’re a buyer, it means moving fast, being prepared, and knowing exactly what you’re willing to compromise on. And if you’re a seller? Well, you’re in the driver’s seat — for now.

Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.

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