Are Housing Prices Dropping on Long Island? (2025 Market Update)

Short answer: Not exactly — while some neighborhoods are seeing slight cooling, Long Island’s median home prices are still near record highs. Inventory remains tight in many towns, and sellers continue to benefit from strong demand in certain price ranges. That said, rising mortgage rates and fewer overall transactions are creating pockets of opportunity for buyers.

Long Island Housing Market at a Glance

Here’s what the latest data shows:

• Median prices remain high. Depending on the source, Long Island’s median sale price sits between $725,000 and $750,000 as of mid-2025.

• Sales activity has slowed. The number of closed sales is down about 10% year-over-year, a sign of softer buyer activity.

• Inventory is still low — but rising slightly. Some areas have seen more listings hit the market compared to last year, though we’re still well below a balanced market.

• Mortgage rates remain elevated. The 30-year fixed mortgage rate is averaging around 6.6%–6.7%, reducing buying power compared to the ultra-low rates of 2021–2022.

• The market is split by neighborhood. Some zip codes are cooling, while others — especially in-demand school districts or luxury waterfront communities — are still seeing multiple offers.

Why Prices Haven’t Dropped Across the Board

Different reports (OneKey MLS, Redfin, Zillow, local real estate boards) sometimes show slightly different numbers. That’s because:

• Some track only Nassau & Suffolk, while others include the East End.

• Median prices can be skewed if more luxury homes sell in a given month.

• Monthly and quarterly reports capture different trends.

The takeaway? The Long Island market is nuanced. Overall prices are holding, but there’s more room for negotiation in certain neighborhoods.

What Buyers Should Know Right Now

• You may have more negotiating power. Look for listings with recent price cuts or that have been on the market longer than average.

• Get pre-approved early. Higher mortgage rates mean knowing your exact budget before you shop is essential.

• Focus on micro-markets. Conditions in Huntington may be completely different from Massapequa, even if county-wide numbers look similar.

What Sellers Should Keep in Mind

• Price it right from the start. Overpriced homes are sitting longer and may eventually need a reduction.

• Leverage marketing. Professional photography, floor plans, and targeted online exposure can set your home apart.

• Consider timing. If you’re not in a rush to sell, waiting for seasonal spikes in demand could work in your favor.

Nassau vs. Suffolk — A Quick Comparison

• Nassau County: Median home prices are generally higher, often exceeding $800,000.

• Suffolk County: Medians are typically in the mid-$600Ks to low $700Ks, but vary greatly by town.

• Local variation: Even within a single county, price trends can vary widely by ZIP code and school district.

The Bottom Line

Long Island’s housing market in 2025 is still strong overall, with prices near record highs. However, slower sales and elevated mortgage rates have created opportunities for well-prepared buyers — especially in neighborhoods where inventory has grown.

If you’re thinking about buying or selling, local expertise matters more than ever. Working with a Long Island real estate agent who understands neighborhood-level trends can mean the difference between overpaying and getting the best possible deal.

Thinking about making a move?
I’m Ronnie Morrow, a Long Island real estate agent with Century 21 AA Realty. I specialize in helping sellers get top dollar and buyers find homes with the best long-term value. Contact me today for a free, no-obligation home market analysis.

📞 Call/Text: C: 631-671-9555 O: 631-226-5995
📧 Email: RonnieM@C21AA.com
🌐 Website: www.LIHomesbyRonnie.com