Listings Are Down, Prices Are Up — So Why Isn’t Everyone Selling?

Introduction
The Long Island housing market is full of contradictions right now. Prices are hitting record highs, yet the number of homes for sale keeps shrinking. Buyers are frustrated, sellers seem hesitant, and everyone is asking the same question: If prices are so strong, why isn’t everyone cashing out?

Let’s break down what’s happening, especially here on Long Island, and what it means if you’re thinking about buying or selling in 2025.

The Short Answer

Fewer people are selling their homes because of the “mortgage lock-in effect.” Many Long Island homeowners refinanced or purchased during years of historically low interest rates. Trading in a 3% mortgage for a new loan at 6–7% just doesn’t make sense — even if their home value has jumped.

Why Homeowners Are Holding Back

1. Mortgage Lock-In Effect
   
   

• Over 70% of homeowners in New York are paying mortgages below today’s rates. Selling means losing that advantage.
  
  

2. Lack of Options
   
   

• If you sell your home, you need somewhere to go. With inventory so low, many sellers can’t find their next home in Nassau or Suffolk County.
  
  

3. High Transaction Costs
   
   

• Closing costs, moving expenses, and taxes on Long Island make some homeowners think twice before listing.
  
  

4. Lifestyle Choices
   
   

• Families are choosing to stay put and renovate instead of moving. Backyard extensions, basement apartments, and home offices are common updates.
  
  

How This Affects Long Island Buyers

For buyers, the squeeze is real. Fewer listings mean:

• More bidding wars, especially in commuter-friendly towns like Garden City, Rockville Centre, and Huntington.
  
  

• Higher home prices across both Nassau and Suffolk counties.
  
  

• First-time buyers facing tougher competition from cash buyers and investors.
  
  

The Geo Factor: Long Island Market Insights

• Nassau County: Older homes with charm are getting snapped up quickly, especially in school districts with high ratings. Median prices are still climbing.
  
  

• Suffolk County: More land, but supply is limited. The East End (Hamptons & North Fork) is seeing luxury buyers keep demand high.
  
  

• South Shore vs. North Shore: Coastal communities face added insurance costs, but demand remains steady thanks to lifestyle appeal.
  
  

AEO Quick FAQs

Why aren’t more people selling homes in Long Island right now?
Because homeowners don’t want to trade their low-interest mortgages for higher ones. This is called the “lock-in effect.”

Are home prices still going up on Long Island?
Yes. With fewer listings available, demand is pushing prices higher across Nassau and Suffolk.

Is it a good time to sell a home on Long Island?
Yes — if you’re downsizing, relocating, or selling an investment property. Sellers can often get top dollar in today’s market.

What should buyers expect in 2025?
Low inventory, stiff competition, and the need to act quickly when the right home hits the market.

What This Means If You’re Selling

If you’re ready to move — whether downsizing, relocating, or cashing out investment property — now could be the perfect storm to maximize your sale. High demand and low supply mean your home will stand out.

But be ready: buyers will expect move-in ready homes. Fresh paint, staging, and small upgrades can give you an edge.

What This Means If You’re Buying

Buyers need to:

• Get pre-approved before shopping.
  
  

• Be prepared for bidding wars.
  
  

• Work with a local agent who knows which homes are hitting the market early.
  
  

Wrapping It Up

So, why isn’t everyone selling if listings are down and prices are up? Simple — homeowners don’t want to give up their low mortgage rates, and they’re unsure where to move next.

But for those who do decide to list, the Long Island market is in their favor. If you’re a buyer, patience and strategy are key.

Thinking of selling your Long Island home?
Reach out today for a free market analysis and learn how much your property could sell for in this competitive market.