One of the biggest questions I'm hearing in today's housing market is whether home prices are finally starting to come down.
It's understandable why.
Nationally, buyers have gained negotiating power in many markets. Homes are taking longer to sell in some parts of the country, inventory has increased, and mortgage rates remain elevated.
But Long Island continues to tell a somewhat different story.
Based on residential sales across Nassau and Suffolk Counties, Long Island home prices were still higher in August than they were one year ago — even as the number of transactions declined.
Across the two counties, 2,279 residential properties closed during August at a median sale price of approximately $799,000.
In August 2025, the median was approximately $750,000.
That's an increase of roughly 6.5% year over year.
So if the question is whether Long Island home prices are broadly declining, the August data doesn't support that conclusion.
But there is more happening beneath the headline.
Nassau and Suffolk Both Recorded Higher Prices
Nassau and Suffolk both experienced year-over-year median price increases, although Suffolk recorded the larger gain.
In Nassau County, the August median sale price was approximately $882,000, compared with $843,000 in August 2025 — an increase of about 4.6%.
In Suffolk County, the median increased from approximately $680,000 to $735,000, an increase of about 8.1%.
This continues a trend that was visible earlier this summer. OneKey MLS reported that July single-family median prices were up year over year in both counties, including particularly strong growth in Suffolk.
While monthly medians will fluctuate depending on the mix of homes that sell, the direction of the data remains clear: Long Island home values have continued to receive support from buyer demand and limited supply.
But Fewer Homes Are Selling
Price is only one part of the market.
Approximately 2,279 homes closed across Nassau and Suffolk during August, compared with approximately 2,403 in August 2025.
That's about a 5% decline in the number of sales.
So we're seeing an interesting combination:
Higher prices, but fewer transactions.
That's consistent with some of what is happening nationally.
High home prices and mortgage rates in the mid-to-upper 6% range continue to challenge affordability and keep some buyers on the sidelines. The average 30-year fixed mortgage rate was 6.66% as of August 27.
Yet buyers who remain active on Long Island are still competing for desirable properties.
More Than Half of August Sales Still Closed Above Asking
Across Nassau and Suffolk, approximately 57% of August sales closed above their final asking price.
Another roughly 9% sold at asking.
That means approximately two-thirds of August transactions closed at or above asking price.
But once again, the market becomes much more interesting when we look at different price ranges.
Under $1 Million Remains the Most Competitive Part of the Market
Long Island buyers shopping below $1 million faced considerably more competition than buyers at the higher end.
Among August sales:
Below $600,000: approximately 60% sold above asking.
$600,000–$800,000: approximately 69% sold above asking.
$800,000–$1 million: approximately 60% sold above asking.
The $600,000-to-$800,000 range was particularly competitive. The median sale was approximately $20,000 above the final asking price, and homes entered contract in a median of approximately three weeks.
That's an important reminder for buyers.
Even though the national housing conversation has increasingly focused on buyer negotiating power, affordable and mid-priced Long Island homes can still attract considerable competition.
Above $1 Million, Buyers Gain More Leverage
The pattern begins changing once we move into higher price ranges.
From $1 million to $1.5 million, August results were much closer to evenly divided between homes selling above and below asking.
Between $1.5 million and $2 million, approximately 53% of sales closed below asking.
And at $2 million or more, approximately 76% sold below asking.
The median $2 million-plus sale closed approximately $124,500 below its final asking price, and those properties took a median of approximately 44 days to enter contract.
That doesn't mean Long Island's luxury market is weak. There are still highly desirable properties that generate significant buyer interest.
It does mean buyers generally have more negotiating leverage as the price increases, while sellers have to be increasingly thoughtful about pricing and positioning.
So Why Aren't Long Island Prices Falling?
There are several forces working against each other right now.
Mortgage rates are limiting affordability and reducing the number of buyers who can participate.
At the same time, Long Island remains a supply-constrained market, particularly in the price ranges where the largest number of buyers are searching.
That dynamic can produce exactly what we're seeing:
Fewer transactions without a corresponding drop in home values.
Nationally, the housing market has moved toward buyers in many areas, but recent research has identified New York City suburbs as one of the areas where seller conditions remain comparatively strong.
Long Island's August results help explain why.
What Does This Mean for Buyers This Fall?
The answer depends heavily on your price point.
If you're shopping under $1 million, particularly between approximately $600,000 and $800,000, you should still expect strong competition for attractive, well-priced homes.
That makes understanding comparable sales before making an offer especially important.
At higher price points, buyers may have more opportunity to negotiate on price, terms or both.
And buyers who have been waiting for a broad decline in Long Island home prices should recognize that, at least through August, it hasn't happened.
What Does This Mean for Sellers?
Long Island is still providing sellers with a favorable environment in many price ranges.
But that doesn't mean simply putting a home on the market at any price will produce competition.
The August data shows a clear dividing line.
Homes in the most active price ranges are frequently selling above asking, while higher-priced properties are much more likely to require negotiation.
For sellers, understanding exactly where your property fits within that spectrum is more important than relying on an island-wide median.
Are Long Island Home Prices Coming Down?
Not based on the latest sales data.
Across Nassau and Suffolk Counties, August's median residential sale price was approximately 6.5% higher than one year ago.
But the market is becoming increasingly segmented.
Buyers have gained leverage nationally and are seeing more negotiating room locally at higher price points. At the same time, competition for many homes below $1 million remains strong enough to keep pushing sale prices above asking.
So as we head into the fall, the Long Island market isn't simply a "buyer's market" or a "seller's market."
It increasingly depends on what you're buying, where you're buying it and what price range you're competing in.
Market data in this analysis reflects residential real estate activity across Nassau and Suffolk Counties based on OneKey MLS data. Figures include multiple residential property types and are intended to illustrate overall market trends. Individual markets and properties may perform differently.
