Long Island Home Prices Hit Record Highs in August
According to a recent report from News12, Long Island home prices have once again climbed to record highs, continuing a streak that shows no signs of slowing down. Tight inventory and steady buyer demand are fueling one of the hottest housing markets in the country.
Nassau County: Prices Surge Past $875,000
In August, the median price of a single-family home in Nassau County rose to $875,000, a 5.4% increase compared to last year. This marks the third consecutive month of record highs for the county. For context, just two years ago the median was $750,000 — highlighting the pace of appreciation Nassau homeowners have seen in a short time.
Suffolk County: New Highs at $714,000
Meanwhile in Suffolk County, the median price reached $714,000, up 5% year-over-year. This is the fourth straight month that Suffolk has set a new record. Two years ago, Suffolk’s median sat at $625,000 — meaning buyers entering the market today are paying nearly $90,000 more.
Mortgage Rates and Buyer Demand
Adding to the dynamic, mortgage rates have begun to fall. The average 30-year fixed rate dropped to 6.35% in August, its lowest point since last October. While this improves affordability for buyers, it also creates stronger competition in a market where listings remain scarce.
Experts believe that falling rates may bring more buyers into the market — potentially driving prices even higher if inventory does not increase.
Advice for First-Time Homebuyers
If you’re preparing to buy your first home on Long Island, today’s market requires both preparation and strategy. Here are a few key steps:
1. Speak With a Lender Early
Before looking at homes, connect with a trusted lender and get prequalified. This not only clarifies what you can afford but also shows sellers you’re a serious buyer when you submit an offer. In a competitive market, prequalification is often the first step toward standing out.
2. Know Your Budget and Monthly Payment
It’s important to look beyond the list price and focus on what your monthly payment will be. Between mortgage principal, interest, taxes, insurance, and potential HOA fees, your true monthly cost can vary widely. Understanding these numbers ensures you buy a home that fits comfortably within your financial goals.
3. Structure a Competitive Offer
With multiple offers common across Long Island, the way your offer is structured matters. Lean on your agent to craft terms that appeal to sellers, whether that’s offering flexible closing timelines, a stronger earnest money deposit, or minimizing contingencies. In many cases, the strongest overall offer — not just the highest price — wins.
By preparing ahead and knowing what you can afford, you’ll be better positioned to move quickly and confidently when the right home hits the market.
What This Means for Buyers and Sellers
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Buyers: Lower mortgage rates improve purchasing power, but competition is fierce. Having a clear strategy and expert guidance is critical.
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Sellers: Record-high home values and limited supply put sellers in a strong position. Proper pricing and marketing can maximize results.
