Long Island home sales and supply increase as prices soar

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December home sales and inventory on Long Island improved year-over-year, as prices continue to rise, closing out another disappointing year for the area’s housing market.  

There were 1,527 homes contracted for sale in Nassau and Suffolk counties in December, 320 fewer than the previous month but an increase of 2.6 percent from the 1,489 homes that were contracted for sale in Dec. 2023, according to preliminary numbers from OneKey MLS. 

The number of closed Long Island home sales in 2024 was about the same as the previous year, which had the lowest number of home sales in the last decade. There were 22,829 closed home sales last year, just 24 more than the 22,805 closed home sales recorded in 2023.  

The number of available homes for sale increased last month as well. There were 4,925 Long Island homes—2,046 in Nassau and 2,879 in Suffolk–listed for sale with OneKey MLS at the end of last month, up 2.4 percent from the 4,811 homes listed for sale the previous month, and up 23.5 percent from the 3,985 homes listed for sale in Dec. 2023.  

Long Island home prices continue to rise in December. The median price of closed home sales in Nassau (including single-family, condos and co-ops) was $791,500, up 4.4 percent from the $758,000 median the previous month, and 12.5 percent higher than the $710,000 median price recorded in Dec. 2023. 

In Suffolk, home prices also climbed. The median price of closed home sales (including single-family, condos and co-ops) last month was $650,000, up 2.4 percent from the $635,000 median the previous month, and 9.2 percent higher than the $595,000 median recorded in Dec. 2023. 

After settling back to around 6.6 percent last month, mortgage rates have risen this week to 7.05 percent for a 30-year fixed loan, according to bankrate.com. Despite earlier optimism, rates have yet to ease, contributing to a still challenging homebuying environment, though industry observers maintain that the rate will move lower. 

Lawrence Yun, chief economist for the National Association of Realtors, said that the inflation rate is not contained but moving ever so slightly into a better spot.  

“The conquering of inflation will be a key factor in bringing down the mortgage rates, which so far have refused to budge even as the Federal Reserve has been cutting other interest rates,” Yun said in a written statement. “The overall consumer price rose by 2.9 percent to close out 2024. It is expected to go down further because the heavyweight components of shelter costs are decelerating, as rents and home prices are no longer rising as strongly. The latest 4.5 percent rise in shelter costs appears high but marks the slowest gain in three years…Moreover, with oil prices falling by about 30 percent from three years ago, more calming effects on inflation are embedded in the future inflation data. Mortgage rates will move slightly lower – perhaps to 6.5 percent just in time for the spring home-buying season.”