As we move into the fall season, the Long Island real estate market is experiencing some significant trends, making it an interesting time for both buyers and sellers. Whether you're looking to purchase a home, sell your property, or simply curious about the market’s performance, here's an overview of the current state of Long Island’s real estate landscape in October 2024.

1. Inventory Levels and Demand

One of the major trends this fall is low inventory, a situation that has persisted in many Long Island communities. With fewer homes available on the market, competition among buyers remains high, especially for desirable areas such as the North Shore and the Hamptons. Despite rising interest rates, demand has stayed relatively strong as buyers seek to lock in deals before the end of the year.

For sellers, this limited inventory translates to a more favorable market, with properties often receiving multiple offers and selling quickly. However, it's important for sellers to price their homes correctly, as buyers have become more discerning with the ongoing affordability challenges.

2. Interest Rates Impact

Interest rates continue to be a crucial factor influencing the real estate market. In October 2024, mortgage rates have remained elevated compared to previous years, hovering around 7-7.5% for a 30-year fixed-rate mortgage. This is impacting buyer affordability, especially for first-time homebuyers, who are feeling the pinch.

That said, many buyers are opting for adjustable-rate mortgages (ARMs) or seeking smaller homes to compensate for higher borrowing costs. Some sellers, especially those who are downsizing or relocating, have adjusted their expectations, offering concessions such as covering part of the closing costs to attract buyers.

3. Seasonal Slowdown

Traditionally, the fall season ushers in a slight slowdown in real estate activity as the holiday season approaches and families settle into the school year. This year is no exception, with fewer listings hitting the market in October compared to the busy spring and summer months. However, this slower pace often benefits serious buyers, who may face less competition than during the peak buying season.

4. Price Trends

Prices on Long Island have remained relatively stable, although there are signs of slight cooling in certain areas. The median home price across Long Island (excluding the Hamptons and the North Fork) in October 2024 is around $550,000, reflecting a modest increase from last year, but with slower appreciation. Luxury markets in the Hamptons and Gold Coast areas have seen more volatility, with some properties selling below-asking price after being on the market for longer periods.

For buyers, this stabilization offers some relief compared to the rapid price increases seen in previous years. For sellers, it highlights the importance of setting realistic price expectations to ensure their home sells in a timely manner.

5. Investment Opportunities

Investors continue to show interest in Long Island, particularly in multifamily properties and vacation rentals. Areas like the North Fork and Fire Island have become increasingly popular for short-term rental investments, especially as travel to Long Island remains strong in the fall months. With new zoning regulations and laws around short-term rentals, however, investors need to stay informed to ensure they are compliant.

6. Looking Ahead

As we move through the rest of fall and into the winter months, the Long Island real estate market is expected to maintain its steady, yet slightly slower pace. Rising interest rates may continue to cool buyer demand, but the low inventory and stable prices should keep the market balanced. If you're thinking of buying, this period could offer a good opportunity, especially as sellers may be more motivated during the seasonal slowdown. For sellers, it's still a strong market, but pricing strategically will be key to closing the deal before year-end.

The Long Island real estate market in October 2024 is characterized by low inventory, stable prices, and the ongoing impact of higher interest rates. Whether you’re buying or selling, understanding the current trends and seasonal shifts will help you make informed decisions. With the right strategy, this fall could be the perfect time to achieve your real estate goals.

The Galluzzo Team is your real estate agents on Long Island. We live here, and we sell here. If you're looking to buy or sell, get in touch with us today!