January 2026 Real Estate Update: What Long Island Buyers & Sellers Should Know Now

Written By William James

As we settle into the New Year, the real estate landscape is showing some notable shifts that every Long Island buyer and seller should understand before making a move.

From mortgage rate movements to inventory trends and forecasts for 2026, here’s the latest you need to know to stay ahead in the Long Island market.

🛠 1. Mortgage Rates Are Lower — And Activity Is Picking Up

After a period of historically high mortgage costs, rates have begun to relax slightly — with some reports showing 30-year fixed rates averaging around the low 6% range. This has sparked renewed interest in buying and refinancing.

What it means for you:

  • Buyers may start feeling more confident about entering the market now rather than waiting for spring.

  • Lower rates can improve affordability — especially when paired with steady or expanding inventory.

📉 2. Home Sales & Inventory Trends Are Shifting

According to the National Association of Realtors, existing-home sales are showing monthly gains, though the Northeast — which includes Long Island — hasn’t seen the same growth yet.

At the same time, national forecasts predict that inventory will continue to grow modestly, edging the market closer to a balanced environment between buyers and sellers.

For Long Island specifically:

  • Inventory has slowly been building — giving buyers more options than we saw in the tightest years of 2024–2025.

  • Price stability and regional demand mean sellers still have strong positioning — especially for well-presented properties.

📊 3. 2026 Housing Forecast Shows Gradual Moderation

Industry forecasts for 2026 point to a housing market that is:

  • Slightly more balanced between buyers and sellers

  • Showing modest home price growth rather than rapid spikes

  • Benefiting from higher inventory than recent years

  • Seeing affordability improve just enough to bring more buyers into the market

In other words, we’re not predicting a crash — but rather a more stable, sustainable market compared to the boom years of the early 2020s.

📍 4. What This Means for Long Island Buyers

If you’re thinking about buying:

  • Inventory growth means more homes to choose from (still competitive, but improving).

  • Lower mortgage rates can help with monthly payment affordability.

  • Be prepared with pre-approval and a clear budget — homes still move quickly when priced right.

📍 5. What This Means for Long Island Sellers

For sellers:

  • Well-priced, well-staged homes continue to generate strong interest.

  • A slightly more balanced market means negotiation matters more — not every home sells above asking anymore.

  • Planning ahead (professional photos, market timing, price strategy) will help attract serious buyers.

🧠 Final Thoughts: January Is a Strategic Month

Winter doesn’t have to slow you down. With current trends pointing toward steady buyer activity and a more balanced market, January can be a smart time to plan — or even act — on your real estate goals.

Staying informed about these current market dynamics gives you an edge, whether you’re buying your first Long Island home, upgrading, downsizing, or selling.

— Dana & Billy

Curious how these trends affect your specific Long Island neighborhood or price range? Reach out — we’d love to help you make a plan.

William James
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