As we reflect on the first quarter of 2025, the Long Island real estate market continues to demonstrate resilience and opportunity, particularly in Nassau and Suffolk counties, with a focus on the South Shore. Below is a concise update on key trends, informed by our expertise and local market insights.
Market Overview
The Long Island housing market has shown signs of stabilization following a dynamic 2024. Median home prices in Q1 2025 have risen significantly year-over-year, with Nassau County reaching $810,000 (up 11%) and Suffolk County at $670,000 (up 11.7%) for single-family homes, according to OneKey MLS data. However, sales activity has slowed, with 1,403 homes contracted in January 2025 across Nassau and Suffolk, down from 1,492 the previous month. This reflects a cautious approach from buyers amid persistent inventory constraints.
Inventory remains a challenge, with only 4,847 homes listed for sale at the end of January (2,053 in Nassau, 2,794 in Suffolk), a 2.2% decrease from the prior month. This low supply continues to drive competition, keeping prices robust despite a slight cooling in demand. The average days on market has increased, indicating buyers are taking more time to decide, which offers opportunities for well-priced listings to stand out.
Mortgage Rates and Economic Factors
Mortgage rates, hovering around 6.5% for a 30-year fixed loan, have remained relatively high, impacting affordability. Inflation, reported at 3% in January, has delayed anticipated Federal Reserve rate cuts, suggesting rates may stay elevated through Q2. This has kept some buyers and sellers on the sidelines, but motivated buyers are still active, particularly for move-in-ready or newly constructed homes.
Opportunities for Buyers and Sellers
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Buyers: The slight increase in inventory (up 5.8% in Nassau, less than 1% in Suffolk) provides more options, particularly for those pre-approved and ready to act. Competitive mortgage rates and a more balanced market give buyers negotiating power, especially for homes priced accurately.
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Sellers: Demand remains strong for well-maintained or renovated properties. Strategic pricing is critical, as overpriced homes risk longer market times. Our team at Jones Hollow Realty Group offers comprehensive staging, professional photography, and market analysis to ensure your home attracts serious buyers.
Looking Ahead
We anticipate a steady market through Q2 2025, with modest price growth of 2-5% and gradual inventory improvements driven by new developments. The South Shore, with its waterfront appeal and vibrant communities, continues to attract buyers seeking value and lifestyle. Our boutique approach ensures personalized guidance, whether you’re buying your dream home or selling for top value.
For a tailored consultation or to explore listings, download the Jones Hollow Realty Group app or contact us at www.joneshollowrealty.com. Stay informed and make the most of Long Island’s dynamic market!
Sources: OneKey MLS, Long Island Business News, Behind The Hedges