After a couple of years where the housing market felt stuck in neutral, there are finally encouraging signs that things are starting to shift. While it’s not a dramatic surge, we’re seeing a steady improvement that could set the stage for a much stronger year in 2026—both nationally and right here in Nassau County, Suffolk County, Queens, and Brooklyn.
If you’ve been sitting on the sidelines wondering when the right time to move might be, the answer is becoming clearer: the market is slowly but surely turning a corner.
Let’s be honest—mortgage rates have been on a bit of a rollercoaster ride. After peaking near 7% earlier this year, we’ve finally seen rates begin to ease. While some volatility is expected given current economic conditions, the broader trend is what matters most. And that trend has been moving in the right direction for most of 2025.
According to Sam Khater, Chief Economist at Freddie Mac, the recent rate improvements could allow homebuyers to save thousands annually compared to earlier this year, showing that affordability is slowly improving.
Looking ahead to 2026, the National Association of REALTORS® predicts mortgage rates will average around 6%. While that’s not the rock-bottom rates we saw a few years ago, it’s a meaningful improvement that will help more buyers get back into the market.
For the most current mortgage rate information, you can check Freddie Mac’s weekly Primary Mortgage Market Survey®, which tracks national mortgage rate trends.
What This Means Locally: Even a half-point drop in mortgage rates can make a significant difference in monthly payments on Long Island homes. For a median-priced home in Nassau County, that could translate to savings of $200-300 per month—real money that helps stretch your buying power.
One of the biggest challenges over the past few years has been the severe shortage of homes for sale. Sellers who refinanced at historically low rates during the pandemic have been understandably reluctant to list their homes. But that’s starting to change.
More homeowners are recognizing that life doesn’t stop just because mortgage rates went up. Whether it’s a growing family needing more space, a job relocation, or downsizing for retirement, people always have reasons to move. And we’re seeing that translate into more listings hitting the market.
The Long Island Picture: Our local market reflects this trend, though with some important nuances. Nassau and Suffolk Counties, along with Queens and Brooklyn, have historically tight inventory compared to pre-pandemic levels. However, we’re beginning to see modest increases in listings, particularly as homeowners realize that waiting for rates to return to 3% just isn’t realistic. The homes that are available are attracting serious buyers who are ready to act.
With rates coming down and more homes to choose from, buyer activity is gaining momentum. We’re not seeing the frenzied bidding wars of 2021-2022, which is actually good news for buyers. Instead, we’re moving toward a more balanced market where buyers have time to make thoughtful decisions without feeling pressured.
According to NAR Chief Economist Lawrence Yun, existing home sales are projected to rise by approximately 14% in 2026—a significant jump after several years of stagnation.
One question I hear constantly is: “Are prices going to crash?”
The short answer is no. While some individual markets may see slight price corrections, a housing market crash is not in the cards. Here’s why:
Prices Will Continue Rising, Just More Moderately
National forecasts predict home prices will increase by about 4% in 2026, following an estimated 3% gain in 2025. This modest, sustainable growth is much healthier than the double-digit spikes we saw during the pandemic.
Even in markets experiencing small price declines right now, home values remain significantly higher than they were just a few years ago. The appreciation we’ve built over the past five years provides a strong cushion against any major drops.
Local Market Considerations
Price trends will vary by location and property type. In the New York metro area, including Long Island, we continue to see strength in home prices due to severe supply constraints. Limited available land and reduced outmigration from our region keep inventory tight, which supports price stability.
However, pricing correctly from the start is more important than ever. Homes that sit on the market too long often need price reductions to attract buyers. As your agent, I use comprehensive market analysis to help sellers price competitively from day one.
The housing recovery won’t look the same everywhere. While some Sun Belt markets like Austin and Tampa experienced rapid building and are now seeing oversupply, the Northeast—including our Long Island market—faces different dynamics.
According to recent analysis, there are approximately 65% fewer homes available in parts of the Northeast today compared to pre-pandemic levels. This tight supply, combined with steady demand from buyers who need to live near New York City for work, continues to support our local market.
New York Market Strengths:
After being squeezed out of the market for the past few years, first-time buyers may finally catch a break. Lower rates combined with more inventory options create better opportunities. However, competition remains strong, so getting pre-approved and working with an experienced agent is crucial.
If you’ve built equity in your current home, 2026 could be an excellent time to make your move. While you’ll be giving up your current low rate, the improved inventory and more balanced market conditions make finding your dream home more achievable.
Don’t let concerns about “losing” your low mortgage rate paralyze you. If your life circumstances have changed and you need to move, waiting indefinitely isn’t practical. The key is working with an agent who understands current market dynamics and can help you maximize your sale price while also finding your next home.
With rental demand remaining strong in the New York metro area and prices stabilizing, 2026 may offer opportunities for investment properties, particularly multi-family homes in Queens and Brooklyn.
Whether you’re thinking about buying or selling, now is the time to start planning. Here’s what I recommend:
For Buyers:
For Sellers:
This recovery won’t happen overnight. It’s not a flood of activity, but rather a steady improvement that’s building momentum heading into 2026. After several slower-than-normal years, the market is finally starting to turn a corner.
Declining mortgage rates, more listings, and growing buyer activity all point to a market gaining real traction. For those who have been waiting for the “right time” to make a move, that time may be approaching.
The housing market is entering 2026 on steadier footing than it’s been in years. We’re seeing affordability improve—not because financing suddenly became cheap, but because prices are cooling and wages are rising. It’s a gradual process, but one that’s moving in the right direction.
If you’ve been thinking about making a move, let’s talk about your specific situation and goals. Every buyer and seller has unique circumstances, and what matters most is finding the strategy that works best for you.
Ready to make 2026 your year to move? Contact me to discuss what’s happening in your specific neighborhood and how we can make the most of the improving market conditions.
Carolyn Best
Licensed Real Estate Agent
EXIT Realty Premier
Serving Nassau County, Suffolk County, Queens & Brooklyn
📧 Email: carolyn@bestnyrealestate.net
📱 Mobile: (516) 250-4891
🌐 bestnyrealestate.net
With a decade of experience helping Long Island families buy and sell homes, I bring deep local knowledge, honest guidance, and a commitment to putting your interests first. Let’s connect and discuss your real estate goals for 2026.
