Long Island Home Prices, Sales Dip As Interest Rates Rise

LONG ISLAND, NY — Long Island's housing prices have finally started to come down from the all-time highs that were set during the summer. But real estate experts say it's still a good time to sell your home.

The latest data from OneKey Multiple Listing Service shows that the median Nassau home price dropped to $695,000 in September, down $5,000 from August. In Suffolk, prices were down to $550,000 in September, down from $565,000 in August. But both prices are still about 5 percent over where they were at the same time last year.

Both Nassau and Suffolk reached all-time high housing prices in July. Nassau reached a record median sales price of $720,000, and Suffolk was at $575,000.

Prices are still nowhere near their pre-pandemic levels, though. The median sales price in January 2020 was $529,000 in Nassau County and $400,000 in Suffolk.

While prices are up, the number of sales is down. Sales usually slow in the autumn, but there were 1.055 homes sold in Nassau in September, down more than 23 percent from the year before. In Suffolk, there were 1,272 — a drop of more than 21 percent.

Jim Speer, the CEO of OneKey MLS, said the decline is sales is due to the season, but also rising interest rates. Rates on 30-year mortgages has more than doubled over the last year, going from 3 percent in October 2021 to nearly 7 percent today.

“The Long Island real estate market is headed toward a more balanced market that still favors sellers because of the limited supply of inventory," Speer said. "Supply and demand is always at play, keeping prices in check on Long Island. The demand for housing remains constant. With current financing conditions, serious buyers are still in the market, adapting their home choices to suit their needs.”