There are many states and localities where housing inventory has increased drastically, as buyers have been retreating back on the fence waiting for lower rates.
Moreover, financially, they just can’t afford the current prices. Mortgage rates have been hovering between 6.5% and 7%. When you add the other costs of insurance and the ongoing costs of ownership, this market has moved many to the sidelines to wait and see when and if rates and especially prices will subside.
Prices will still be stable, increasing slightly, until there is a marked decrease in demand on Long Island.
However, Jerome Powell, our Federal Reserve chair, isn’t succumbing to pressure, as Trump is trying his best to do so) to lower rates. He is still waiting for the market to provide him more concrete insight to determine if job increases/attritions, unemployment are occurring and any other criteria in a negative way, that would warrant decreasing the Fed Funds rate.
In Nassau County, during the second quarter, closed single-family home median sales were down 5.4% year-over-year to 1,846 units, but sale prices increased 4.5% year-over-year to $820,000.
Condo median closed sales increased 3.5% year over year to 186 units, but sale prices increased 3.5% year over year to $807,500. However, median closed sales of co-ops were down 15.8% to 187, but sale prices increased 11.3% to $345,000.
Sale prices across the board in Q2 2024 were 100.4% of the asking price, and in Q2 2025, they were 100.3% of the asking price, and purchasers are still paying for them.
Either they have a fear of missing out or need and want to purchase because they are in an excellent financial position, need the tax deductions, and are willing to pay what the sellers are asking. Overall, sales of all properties are down 5.5%. Year-over-year, the number of homes for sale has decreased by 6.7%.
However, median sale prices have increased 6%.
New listings inventory for single-family homes has slightly increased 4.7% from 3,458 units in Q2 2024 to 3,619 in Q2 2025.
The total number of homes listed 1/1/24-6/30/24 was 6,026, compared with 6,216 during the same period in 2025, an increase of 3.2%. The number of days on the market has gone down from 52 in Q2 2024 to 44 in Q2 2025. The number of months’ supply has also receded from 3.4 months in Q2 2024 to 3.2 months in Q2 2025, a decrease of 5.9%.
New condo listings decreased from 296 units in Q2-2024 to 278 in Q2-2025; a decrease of 6.1%. Available condos for sale decreased from 242 units in Q2 2024 to 203 in Q2 2025.
However, the days on the market have increased yoy from 50 in Q2 2024 to 61 in Q2 2025. The number of months’ supply has gone from 4 months in Q2 2024 to 3.3 months in Q2 2025, a decrease of 17.5%. It’s very obvious that demand is still there, causing this decrease to occur. Also contributing is that not enough new inventory is entering the market.
Co-op inventory also decreased 3.3% from 306 units in Q2 2024 to 296 in Q2 2025. Available listings during the same period also changed 3.3% from 246 units to 218. The number of months to sell the entire coop inventory decreased from 3.7 months to 3.1 months comparing Q-2 2024—Q-2 2025, a 16.2% decrease.
Overall inventory of single-family, condos, and coops has increased compared to 2024 and 2025. However, sales of single-family homes have ticked up to 1,846 units compared to Q1 2025 of 1,729 units; but have continued to trend lower compared to Q2 2024 of 1,951 units, a decrease of 2.5%.
The same holds true of condos, where 186 have sold in Q2 2025 compared to 158 in Q1 2025. However, those sales are higher compared to Q2 2024 of 175 units, an increase of 6.3%. Coop sales were down from 214 in Q1 2025 compared to 187 in Q2 2025. But down significantly, from 222 in Q2 2024, decreasing yoy, 15.8%
According to Realtor.com, inventory has increased year over year to over one million units nationwide, which hasn’t been achieved since the winter of 2019. In many markets, it is taking a week longer to sell a home on average compared to 2024.
Prices are also being adjusted lower and are becoming more normal due to buyers in the South and Midwest having second thoughts about purchasing due to rates and prices.
Affordability continues to become an issue, even on Long Island. A score of 120 on the affordability index means a buyer has 120% of what is needed to purchase. For single-family homes. That number has trended down from 86 in Q-2 2023, 74 in Q-2 2024 and now 72 in Q-2 2025.
The index has dropped drastically for condos from 97 in Q2 2023, 74 in Q2 2024, to 73 in Q2 2025.
For co-ops although the number was high, 199 in Q-2 2023, it has steadily decreased to 187 in Q2 2024, and to 171 in Q2 2025. Taking a 40-year conventional mortgage might be one solution to lower your monthly cost.
However, like student debt, and whether or not you’ll eventually pay off your loan and at the same time, hopefully build appreciation and equity at the end.
(Nassau County stats courtesy of OneKeyMLS),
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. For a “FREE” consultation, value analysis of your home, or to answer any of your questions or concerns, he can be reached at: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com or via https://www.Li-RealEstate.com to fill out the questionnaire.
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