Long Island’s real estate market hit unprecedented heights in the second quarter of this year, with home prices climbing to record levels and competition among buyers intensifying. A report from Douglas Elliman and Miller Samuel reveals that the median home price on Long Island, excluding the East End, soared to $670,000 from April to June—a nearly 12% increase compared to the same period last year.
In the Hamptons, the surge was even more pronounced. The median sale price there reached a new peak of just under $1.9 million, marking a staggering 30.8% rise from 2023. Sales also experienced a dramatic boost, with the number of transactions jumping 74% to 451. The North Fork, however, saw a slight dip in prices, with the median sale falling 1.7% to $963,000 as the number of available listings surged by 49% – the highest level since 2020.
Nearly 57% of homes on Long Island sold for more than the asking price, just shy of the record 59% set two years ago. Jonathan Miller, CEO of Miller Samuel, attributes such high competition to a severe shortage of listings, which remains a persistent issue. At the end of June, the number of available properties was less than half of what it was five years ago.
One of the main reasons for the limited inventory is the low mortgage rates of the past decade, which have kept many homeowners in place. “It’s making the housing market very difficult to navigate for buyers,” Miller told Newsday. Reluctance to sell is compounded by the challenge of finding a new home, as the supply remains tight.
Tony Piscopio, senior executive manager of sales for the North Shore region at Douglas Elliman, echoed these sentiments. He noted that while inventory levels did increase slightly compared to the previous year, the rise was insufficient to meet the high demand. “The buyer pool is so large and that’s what’s making this so competitive,” Piscopio said.
Still, there was a small glimmer of relief for buyers in the second quarter: for the first time in five quarters, there were more homes on the market compared to the previous year. Nicole Burke, a real estate agent at Charles Rutenberg Realty, pointed out that some sellers are still setting unrealistic prices, leading to prolonged listings and eventual price reductions.
Looking ahead, Miller expects the supply of homes to grow, particularly if the Federal Reserve cuts its benchmark rate, potentially lowering mortgage rates. Although economists predict a gradual decrease in rates over the next few years, substantial improvements in affordability are unlikely in the short term. “The idea of a significant improvement in affordability for homebuyers over the next year or two seems remote,” Miller said.
