Home prices in Nassau County began to level off in April, even as they kept surging in Suffolk County, according to new data from OneKey MLS.

The median home price among single-family homes sold in Nassau County increased 3.3% to $790,000 in April compared with the previous year, which was a slower rate of growth than the 12.6% annual growth rate a year earlier.

The median price in Nassau fell from $820,000 in March. Home prices are typically measured on a year-over-year basis to account for seasonality in the real estate industry.

In Suffolk County, the median single-family home price among April closings increased 8% to $675,000 compared with the same month a year ago. That was just shy of the all-time high of $680,000. 

Local real estate experts said sellers continue to hold significant negotiating power this spring because there haven’t been enough new listings to satisfy buyers.

The lack of inventory has been a major challenge for Long Island’s housing market, and has kept homeowners from putting their houses on the market and looking to upgrade or downsize nearby, said Richard Haggerty, CEO of OneKey MLS, the local multiple listing service that covers Long Island.

"On the sell side, they’re getting the prices, but then they’re turning around, [and] if they want to stay local, they’re going to have to pay that same premium in order to stay in this market," he said.

There were only 4,678 single-family homes available on Long Island at the end of April. That was 3.7% fewer than in April 2024, and fewer than half as many were available at the same time of year in 2019 before the pandemic.

The lack of inventory has kept a lid on the number of closings even as agents report little trouble selling the houses that are up for sale. There were 1,266 closings in Nassau and Suffolk counties in April, or 4% fewer than during the same month a year ago. Closed sales reflect deals that may have been agreed to several months earlier. 

Mortgage rates have contributed to that stagnancy in the market. The average 30-year fixed rate was 6.76% for the week ending last Thursday, according to Freddie Mac.

Higher interest costs have inflated buyers’ potential monthly payments and convinced sellers who want to upgrade their homes on Long Island that now is not the right time, said Mary Macaluso, an associate broker at Compass Real Estate, who often lists homes in Bethpage.

Many of Macaluso’s listings lately have been estate sales or older Long Islanders moving out of state, she said.

"The younger folks who maybe want to upgrade from their ranches into a Colonial, they’re having a hard time," she said.

First-time homebuyers face an even greater challenge, and Macaluso said she typically advises house hunters to shop for houses priced $50,000 below their budget so they can make an attractive bid.

"It’s even worse than last year, unfortunately" for buyers, Macaluso said. "Sellers are in the driver’s seat. The buyers don’t really have much power to ask [for] much because there’s 20 people behind them that want the house."

Joshua Whalley, a branch manager for Douglas Elliman offices in Babylon and Hampton Bays, said he has seen some softening in the market compared to last year.

Whalley, who often lists homes in Riverhead and on the North Fork, said he has started to notice listings get fewer offers for each showing. But the level of interest can vary widely by community and price segment, with the most competition for lower-priced homes.

"Though the market is transitioning to more of a balanced market overall, you have to read the tea leaves of the local market and your pricing segment," Whalley said.

Still, homes on Long Island are selling faster than in other parts of the U.S., said Joel Berner, a senior economist at Realtor.com. Berner noted that in some areas, including Florida and Texas, sellers need to cut their prices far more frequently to attract buyers.

"Sellers are getting what they’re asking for on Long Island at a higher rate than in the rest of the country," he said.