Douglas Elliman’s latest market report by Jonathan Miller of Miller Samuel Real Estate Appraisers & Consultants discovered that Long Island residential prices maintained their quarterly growth in the first quarter of 2025, with top pricing benchmarks reaching all-time highs for the fourth consecutive quarter. While prices climbed, though, sales remained low and supply continued in retreat, pointing up the region’s ongoing supply-and-demand disparity.
The Long Island housing market continued to surprise in the first quarter of 2025, as price direction indicators rose year over year to record levels for the fourth consecutive quarter, according to the report.
Despite additional price hikes, sales volume fell for the second time in a row compared to the same period last year and remains well below long-term standards. At the same time, listing inventory fell to the second-lowest level in history.
This tight supply has created intense buyer competition: bidding wars were responsible for more than half of all closings for the fourth quarter in a row, demonstrating the imbalance of supply and demand across the region.
Median Sales Price Surpasses $2 Million for the First Time in the Hamptons
In the Hamptons, Q1 2025 was a record-breaking inflection point for the luxury segment. The median sales price increased year over year to an all-time high, crossing over the $2 million threshold for the first time.
Sales posted strong year-to-year gains for the sixth time in a row and nearly doubled from this time last year. That was partly driven by a steady rise in listing inventory over the past two years, which has helped to make more deals happen.
More sales than ever happened within the “Hamptons Middle,” with properties costing between $1 million and $5 million leading the way.
On the North Fork, Sales Continue to Climb While Inventory Falls
North Fork sales have been increasing for nearly two years, and Q1 2025 has witnessed the seventh consecutive quarter of dramatic year-over-year increases. At the same time, year-over-year listing inventory fell for the second time as the market tightened up, even with the high demand.
While price trend indicators were lower than last year’s levels, a record percentage of sales occurred in the $1 million to $2 million range.
To see details, visit elliman.com/marketreports.
