Long Island Real Estate Market Update: October 2024

As the fall season unfolds, the Long Island real estate market continues to showcase notable trends, making this an intriguing time for both buyers and sellers. Whether you’re considering purchasing a home, selling your property, or simply staying informed, here’s a comprehensive look at the current market landscape this October.

1. Low Inventory and High Demand

A defining characteristic of this fall’s market is persistently low inventory across many Long Island communities. With fewer homes on the market, competition among buyers remains intense, especially in sought-after areas like the North Shore and the Hamptons. Despite higher interest rates, demand is holding steady as buyers aim to finalize deals before year-end.

For sellers, this limited inventory offers a distinct advantage, with many homes attracting multiple offers and selling quickly. However, pricing your property correctly is critical, as buyers are becoming more selective due to affordability concerns.

2. Impact of Elevated Interest Rates

Mortgage rates in October 2024 remain higher than in recent years, averaging between 7% and 7.5% for a 30-year fixed-rate mortgage. These rates are challenging buyer affordability, particularly for first-time homebuyers.

In response, many buyers are turning to adjustable-rate mortgages (ARMs) or downsizing their expectations. Sellers, particularly those downsizing or relocating, are offering incentives such as covering partial closing costs to entice buyers.

3. Seasonal Market Slowdown

As the holiday season approaches, the market naturally slows down, with fewer new listings in October compared to the bustling spring and summer seasons. This reduced activity benefits serious buyers who face less competition, creating a unique window of opportunity to find the right home.

4. Stable Home Prices with Regional Variations

Home prices on Long Island have remained relatively stable, with the median price (excluding the Hamptons and North Fork) hovering around $550,000. This reflects modest growth from last year but at a slower rate of appreciation.

In luxury markets such as the Hamptons and Gold Coast, some properties are selling below asking price after spending more time on the market. For buyers, this stabilization brings some relief compared to the sharp price increases of prior years. For sellers, setting realistic price expectations is key to a successful sale.

5. Growing Investment Opportunities

Long Island continues to attract investors, particularly in multifamily properties and vacation rentals. Areas like the North Fork and Fire Island remain hotspots for short-term rental investments due to strong demand for local travel. However, with new regulations around short-term rentals, it’s essential for investors to stay informed and compliant.

6. Looking Ahead

As we transition from fall into winter, the Long Island real estate market is expected to maintain its steady pace, albeit slightly cooler. Rising interest rates may continue to moderate buyer demand, but the ongoing low inventory and stable pricing will help maintain market equilibrium.

For buyers, this season could be an ideal time to secure a home, as sellers may be more flexible. For sellers, pricing your home strategically will ensure it stands out and sells promptly.

Let’s Achieve Your Real Estate Goals Together

The Long Island real estate market this fall is defined by low inventory, stable prices, and the influence of higher interest rates. Whether you’re buying or selling, understanding the current trends will empower you to make confident decisions.