L
ong Island's housing market is bucking the national trend, with homebuyers facing intense competition and sellers holding the upper hand. According to a report from Redfin, Long Island had the second-strongest seller's market among the top 50 most populous US metropolitan areas in July. The region's strong job market and limited supply of new construction homes have created a perfect storm for sellers.

    In contrast, many other parts of the country are experiencing buyer's markets, where there are more listings than buyers. In some areas, such as Miami and Fort Lauderdale in Florida and Austin, Texas, there were over twice as many listings as buyers. Redfin's chief economist, Daryl Fairweather, attributes this shift to a surge in new construction during the pandemic, which has flooded these markets with inventory.

    On Long Island, however, the opposite is true. With 40.5% more buyers than listings, home shoppers are facing intense competition and sellers have significant leverage. Local agents report that homes are selling quickly, often with multiple offers, and homeowners can dictate terms. To succeed in this market, buyers need to be prepared to act fast and make compromises.

    While some experts predict a shift towards buyer-friendly markets if mortgage rates decline this fall, Redfin's Fairweather believes that Long Island's demand will continue to outstrip supply. "It's hard to imagine [Long Island] will return to normal when even in these circumstances, with rates being so high, there's still so much demand relatively to supply," she said.

    To navigate the competitive market, buyers should get prequalified by a lender and have funds ready to make an offer quickly. With limited inventory and intense competition, it's essential for homebuyers to be realistic about their expectations and prepared to act fast.