Nassau County home prices hit record in July, while Suffolk slips from peak

The median price for single-family homes in Nassau County hit a record $810,000 last month as a shortage of homes for sale worsened, driving up prices.

That represents an 11.4% increase compared to July 2023, according to new data from OneKey MLS, the multiple listing service that covers Long Island.

More homes are becoming available in Suffolk County, and the median sales price was $660,000, the first month-over-month decrease since January.

Still, the average price in Suffolk was 10% higher than in July 2023, when the average purchase price was $600,000.

According to OneKey MLS, the median price for single-family homes in Suffolk hit a record $665,000 in June. The figure was revised down by $5,000 after more sales were recorded in June this month.

One reason for the record prices is that there aren’t enough homes to satisfy buyers. More sellers on the market would slow the price increase, says Richard Haggerty, CEO of OneKey MLS.

“My feeling is that as we start to acquire more inventory, these price increases will level off,” he said. “… Prices almost have to level off. We just can’t sustain these kinds of dramatic increases that are purely due to low inventory.”

More listings are coming onto the market in Suffolk, where there were 6% more homes available at the end of July compared to a year ago. However, in Nassau, listings fell 10% compared to July 2023, when they were already at low levels.

Because it can take months to close a deal, the July data reflects sales negotiated in the spring, says Jared Garcia, associate broker at Weichert Realtors in Farmingdale. He believes the market has softened somewhat since then, especially for homes that need renovations.

“Right now, we’re seeing two different markets. The really clean homes in pristine condition are still getting multiple offers and selling pretty quickly,” he said. “But buyers are shying away from some homes that may need a little more work. Those homes are starting to stay on the market longer.”

Mortgage interest rates are falling

The real estate industry is jubilant because mortgage rates have fallen in recent weeks, making it cheaper to borrow to buy a home. Rates could fall even further when the US Federal Reserve begins cutting its key interest rate in September.

The average fixed rate for a 30-year term rose slightly to 6.49 percent last week, but remains near its lowest level in a year, mortgage giant Freddie Mac reported on Thursday.

Some homebuyers are waiting for mortgage rates to drop further before making a purchase, but that could be a mistake, says Andrew Chrzanowski, a real estate agent at Keller Williams Points North in Woodbury.

“My advice to anyone who thinks this way: It is absolutely not to your advantage to wait for rates to fall because when rates fall there are more high-quality buyers and sellers can ask for more money,” he said.

Although mortgage rates are about half a percentage point lower than last year, many sellers may not be swayed by that, says Jessica Lautz, deputy chief economist at the National Association of Realtors.

“Mortgage rates may not yet be low enough for golden-handcuffed homeowners with a mortgage rate below 4% to move – unless there is a compelling reason such as a family or job change,” she wrote in a commentary published online Thursday.

The prospect of falling interest rates could lead to more sales activity toward the end of the year, Haggerty said. The combination of high mortgage rates and low inventory has slowed sales, but they have begun to recover.

In July, 1,873 single-family homes were sold on Long Island, an increase of 6.4% over the previous year.

“This could lead to a very strong fourth quarter,” Haggerty said.

Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered healthcare for Crain’s New York Business.