With the arrival of 2025, seems like an apt time for a real estate market check-in. We’ve asked our esteemed Roundtable panel for their predictions about the year ahead. What’s in their forecast for the Long Island real estate market? Buyers and sellers, or those who just keep their finger on the real estate pulse, read more to find out.
Debra Quinn Petkanas
DANIEL GALE SOTHEBY’S INTERNATIONAL REALTY
SEA CLIFF
Long Island real estate experienced very positive showing and sales activity after the election in November 2024. Based on that and the sales activity during the holiday season, there’s lots of optimism in general and it would seem as if we are headed towards a robust 2025 market. We
are still seeing lack of inventory across Long Island in all price ranges. The majority of consumers have a specific desire to buy new construction or homes that have already been renovated. Most people are busy with their own lives and do not want to do any work. They also don’t have the imagination of what the completed job might look like. Nor do they have wherewithal to engage the professionals to do the work required to renovate. They are willing to pay a premium for this which is why new and renovated homes sell quickly at strong selling prices. One the other side of the coin are homes in need of renovation. These are properties that if consumers view from a different perspective could become tremendous investment opportunities for them. Buyers can evaluate the work needed and come up with a plan of action for timing to complete certain tasks. The benefit for them could be living in the property while they tackle each task. They can better understand how they live in a home and what spaces are most important to them. Having patience rather than the need for immediate gratification of a new or renovated home could prove to be a great benefit for buyers in this competitive marketplace. No matter which direction consumers take in their decision of what to buy, for sellers in any market, proper pricing is crucial in all price ranges! It separates sellers from success or failure in selling their property.
Glen Fox
THE FOX TEAM
DOUGLAS ELLIMAN
LONG BEACH
As 2025 begins, the Long Island real estate market shows promising signs. Inventory is stabilizing, creating opportunities for both buyers and sellers. Long-term investment remains a key factor with steady property appreciation supported by low interest rates and a strong local economy. Sellers can expect a favorable market, while buyers benefit from competitive mortgage rates, making homeownership more accessible. With thriving neighborhoods and a resilient market, 2025 presents great potential for anyone engaged in real estate. Always stay informed and make the most of this dynamic market.
Megan Branigan
BRANCH REAL ESTATE GROUP
SEA CLIFF
As we look ahead to 2025, the Long Island real estate market is set to experience key changes that will shape opportunities for both buyers and sellers. In recent years, factors like limited inventory, higher mortgage rates, and economic uncertainty, including the 2024 election, kept many sellers on the sidelines. These pressures are easing, leading to a gradual rise in inventory, which will provide buyers with more choices and drive increased sales activity. While the rapid price appreciation of past years is behind us, median home prices are expected to grow modestly by 2 to 5%, reflecting steady demand alongside increasing supply. Slightly lower mortgage rates will also motivate buyers who delayed their moves due to limited options and high costs. New developments will boost inventory further, offering buyers modern amenities and energy-efficient homes. These factors signal a shift toward a more balanced market in 2025. Buyers will have greater negotiating power, but sellers who price their homes competitively will still see success. Whether in a buyer’s or seller’s market, accurate pricing remains critical. Overpricing can result in extended market time and ultimately a lower sale price. A well-priced home attracts serious buyers and leads
to smoother transactions for all parties involved. 2025 promises to be a year of opportunity for those who are ready to adapt to these market dynamics.
Samatha Raimond
FIRE ISLAND
SALES & RENTALS
After a strong end to 2024 with six closings in December, including the highest residential sale price ever achieved on Fire Island, our office is optimistic about another great year ahead for Fire Island’s real estate market. One of the challenges we faced the last couple of years was a significant supply constraint, catalyzed by the COVID-19 pandemic, which eased somewhat in the fall of 2024 with a noticeable increase in listings. This shift is important, as rising supply draws more demand, creating more transactions. We saw many off-market deals in 2024 and prices on Fire Island have held strong, highlighting the market value and desirability of owning a house on Fire Island. Looking ahead, I anticipate a larger volume of transactions in 2025, with sale prices continuing to trend upward. This combination of increasing inventory, a more favorable interest rate environment, and continued buyer interest makes it an exciting time for both buyers and sellers. I expect the spring selling season will be strong, so those considering purchasing property on Fire Island may want to get an early start as heightened activity could lead to a buyer frenzy as the year progresses and the summer season approaches.
Nicholas Campasano
THE AGENCY
BAY SHORE
The headline for Long Island real estate in 2025 will likely be an increase in transactions year-over-year. Sellers are adjusting to the “high-interest rate” environment as the new normal. Many — particularly in the higher-end market—are ready to make a move after delaying
their plans. While I anticipate more activity, buyers will continue to face challenges as market shifts won’t fully alleviate current pressures. Buyers: Adaptability is crucial. Many buyers are turning to adjustable-rate loans to manage payments and stay competitive. First-time buyers should prioritize value over perfection—consider homes needing work, invest in improvements, and build equity. The right agent is essential to crafting strong offers and seizing opportunities. Sellers: Sellers with turnkey properties or standout features will remain in control. Move-in-ready homes and those with unique attributes, such as prime locations or larger lots, will attract strong interest and higher offers. Highlighting these features effectively is key to maximizing returns. 2025 will be a year for strategic decisions. Both buyers and sellers should rely on experienced professionals to navigate this evolving market and achieve their goals.
This article appeared in the January 2025 edition of Behind The Hedges Powered by the Long Island Press. Read the full digital edition here.
