Sales Fall off, But Median Sales Prices Rise
By Hank Russell
A local real estate expert said Long Island’s residential real estate market continues to be “confusing” as median sales prices continue to climb, despite fewer sales.
In its report that was released on June 23, the New York State Association of REALTORSⓇ (NYSAR) found that, in Nassau County, the median sales price went up at an annual rate of 4.0%. This past May, the median sales price was $780,000, compared to $750,000 in May 2024. In Suffolk, home prices rose 3.0% this year to $345,000, up from $335,000 in May 2024.
“As has been the case over the past several months, the real estate market remains a very confusing industry to figure out, especially in the New York and Long Island areas,” said Joe Moshé, the broker and owner of Charles Rutenberg Realty, Inc., a Plainview-based real estate agency. “Inventory remains relatively low, prices are still up, buyers are still in a very competitive market, and inventory remains low.”
Moshé added that the younger generation may be contributing to the rise in home prices, as they bring home larger salaries and more disposable income.
“With younger people working in higher-skilled jobs, they are sure to make more money than workers from previous generations,” he said. “Today’s younger homebuyers will seek unique characteristics when buying a house, including an open concept to entertain friends and extra bedrooms that can be converted into home offices.”
What made the findings from NYSAR very confusing, Moshé said, was that, as sales prices took off, home sales dropped 7.4% from 781 last May to 723 last month, according to NYSAR. Further, there were 1.1% fewer homes for sale, as 2,696 houses were on the market last May, compared to 2,596 homes this May. Suffolk’s closings declined 7.1% from 1,074 last year to 998 this May.
In other news, NYSAR said there were 1,473 new listings in Nassau last month, compared to 1,430 in May 2024 — a 3.0% increase. Housing supply remained unchanged at 3.1 months. New listings in Suffolk inched up year over year from 1,818 to 1,821. Meanwhile, there were 3,465 homes for sale last month in Suffolk — up 2.1% from last May’s figure of 3,394. Suffolk’s housing supply slid from 3.2 months to 3.1 months.
Moshé said those who are retired or are about to retire are still living in their houses. “Historically, baby boomers and other retirees seeking a different type of lifestyle are not moving the way they used to.” he said. “Where are they going? How much more are they paying? Their children can’t afford to buy their own homes. I truly believe that many of them will be holding onto their homes for their children.”
For those who are deciding whether to buy or sell their home, Moshé imparted this advice: “Move on with your lives and don’t dwell on the money; you only live once. Just do it.”