Long Island Housing Markets See 82% of Homes Sell Above Asking as Inventory Halves
Updated
Updated · Newsday · May 28
Long Island Housing Markets See 82% of Homes Sell Above Asking as Inventory Halves
1 articles · Updated · Newsday · May 28
Holbrook led Long Island’s hottest housing markets, with 82.3% of homes sold in July-December going above asking price; Ronkonkoma, Selden, North Babylon and Farmingville rounded out the top five.
The bidding wars reflect a deep supply crunch: homes on the market at the end of March were about half pre-pandemic levels, while mortgage rates have mostly stayed above 6% since doubling in 2022.
Across Long Island outside the East End, 56.9% of homes sold above their last asking price, and 66 of 77 communities with at least 50 sales saw a majority of deals close over ask.
The fiercest competition is concentrated in lower-tax, relatively affordable Suffolk County areas, where median prices in several top markets now exceed $600,000 versus roughly $400,000 before the pandemic.
That pressure is hitting first-time buyers hardest, with some losing homes even after bids $30,000 to $40,000 above list and increasingly feeling forced to make aggressive offers.
What economic shock could finally break the fever in Long Island's housing market, where even 6% mortgage rates failed?
With homeowners locked in by low mortgage rates, can Long Island ever build enough homes to solve its housing crisis?
As median prices top $700,000, are Suffolk's 'affordable' towns now permanently out of reach for the middle class?