According to recent data from real estate brokerages, the median sale price on Long Island reached record highs, climbing to $700,000 in the third quarter of 2024 (excluding Long Island’s East End). What does this increase mean for buyers and sellers on South Shore Long Island?
Megan Gardner, Licensed Real Estate Salesperson, Signature Premier Properties
Magangardnerhomes.com • 631-255-3878
The record-high median sale price of $700,000 on Long Island (excluding the East End) reflects the South Shore’s exceptional appeal and is a favorable signal for both buyers and sellers.
First, let’s examine what makes the South Shore so exceptional. The South Shore offers unparalleled access to NYC, proximity to three major airports, and easy accessibility to the Hamptons and Montauk—truly making the world your oyster! Speaking of oysters, the South Shore’s Great South Bay is home to a burgeoning homegrown oyster industry and is the gateway to world-class beaches, such as Robert Moses and Fire Island. Many South Shore towns are also experiencing a heroic revitalization of their downtowns, featuring 5-star dining and premier shopping. This makes the South Shore one of the most desirable places to live, ensuring home values remain robust even during shifting market conditions.
For buyers, this increase signals the importance of preparation. Knowing your budget and partnering with a knowledgeable real estate agent is crucial to navigating this competitive market. While prices may seem steep, investing in a Long Island home means gaining long-term equity and stability.
For sellers, the current climate is full of opportunity. With demand outpacing supply, sellers can achieve premium prices if they adopt the right strategies. Pricing competitively, staging effectively, and working with a seasoned agent can help sellers maximize their returns and leave the closing table with more than ever before.
Ultimately, Long Island’s record prices reflect its status as a unique and resilient market, benefiting both buyers and sellers alike.
Lisa Kennedy LSA, Eric G. Ramsay Associates
lisakennedy@ericramsay.com • (631) 645-0574
As Long Island continues to be an extremely competitive market for buyers, the prices continue to climb regardless of current interest rates. What does this mean for buyers? It simply means they must continue putting their best foot forward. Many buyers remove appraisal contingencies, forgo inspections, work with the seller’s timeline and bid up their offers for the property. It’s pivotal for buyers to have a team working for them, and to note before you start looking to have a buyer agent, inspection company, mortgage representative and a strong preapproval, all with a real estate attorney they like. All of these things are part of presenting an offer, the more complete the offer is the more likely it will be accepted. Another important thing is to work with a full-time agent who can move quickly. Once you find a home, offers, inspections and contracts happen very quickly.
For sellers, the most important thing is to always list prices as in any market. Homes are overbid in this current market, and most sellers are listing their homes at the overbid price. That can be a mistake because it has the opposite effect on the buyers. It can make them feel the home is out of reach because they can’t go 50k over the already overbid list price. List price matters. Sellers also should hire a seasoned full-time agent. As a listing agent, we are faced with multiple offers with multiple different deal structures and mortgage representatives and all of those offers have to be gone through with a fine tooth comb and then presented to the seller in a way that is easily understood. If you don’t have experience as an agent, mistakes can happen.
I think one of the most important things I can say to both buyers and sellers is to have a team of professionals around you that you trust will respond quickly and be proactive on your behalf. It’s important to interview agents and to ask important questions after all you are trusting somebody with potentially the biggest investment in your life. I am wishing all the buyers and sellers out there an amazing year!
Christine Perlow, Mortgage Loan Officer, Nationwide Mortgage Bankers
nmbnow.com/christine-perlow • 516-509-0429
The median sale price on Long Island continues to rise. We are currently still in a seller’s market, meaning that we are left with multiple buyers for each property listed. This increase in median sale price makes it more challenging for buyers to qualify for a home.
Unfortunately, as the prices are increasing, we are in a market where the rates have also been on the rise. As a mortgage professional, I have been looking at some alternative programs, along with grants that are available to assist buyers. This assistance will offset the increase in both the sale price, rates, taxes and insurance. However, it is still a great time to buy. I have heard some of my buyers say that they are going to wait until the market shifts, but we do not see that happening anytime soon. We have no shortage of buyers that will keep the demand for homes up along with the sale prices.
Tanya Fuchs, Licensed Associate Real Estate Broker, Eric G. Ramsay Associates
tanyafuchs@gmail.com • 631-478-8546
We are seeing the trend within a steady increase of the median home prices post-COVID, the inventory shortage and the number of qualified buyers multiplying by the quarter, I am not surprised that we are seeing record sales in many neighborhoods. For any homeowner who is considering selling and moving on to that next chapter of their lives, it is a great time to put their house on the market.
In the first week of January, I listed a gorgeous center hall colonial in Islip and it procured multiple offers within 72 hours, all over asking, with many of the buyers looking to settle down in the neighborhood they were raised in. My sellers now have the arduous decision of deciding which offer to move forward with as the top candidates are all very similar in offer price and terms. We naturally see this as a “good problem” to have, and this particular transaction will now set the precedent for the 2025 market.
With a cohesive and smart marketing approach, pricing strategy and guidance from an experienced agent, sellers in any neighborhood would see similar results and will move on to the next adventure, which brings us to the effects the rising of home prices has on today’s buyers. With such limited inventory, there is so much competition within the home buyer community. Everyone has a similar story, whether they are qualified/pre-approved financially, and the majority have been looking to settle down for quite some time, but there just isn’t enough housing for everyone on Long Island. The homeowners who bought their starter houses during the post-COVID interest rates of 2.5% are either putting extensions on or staying put, and it is not economically feasible for many of these homeowners to sell and buy “the bigger house” at the current rates which are north of 6%. We are seeing starter homes going for these high numbers. Even with the high interest rates, it is still cheaper to buy a house and build equity than it is to rent and pay off someone else’s mortgage. We are seeing a lot of these buyers who keep losing bidding wars and start to move off the island for more affordable housing. At a median home price of $700k, the average homebuyer cannot afford to do other activities such as travel, going out to dinner, or enjoying the simple pleasures of life. They are working just to afford to live on Long Island.
