North Fork home prices reach record high $1.25 million in third quarter

Home prices on the North Fork rose nearly 20% in the third quarter to an all-time high $1.25 million, continuing a steep rise in housing costs for the East End over the past decade, according to new data.

But the real estate market across Long Island will be tested in the coming months as homebuyers contend with mortgage rates at their highest level in three years.

Prices on Long Island, excluding the East End, reached a record level as well, increasing 4.3% to a record $782,000 during the July-to-September period compared to the same stretch a year ago.

In the Hamptons, the median price dropped 6.3% year-over-year to about $1.88 million, according to the latest report from real estate analyst Jonathan Miller and the Hamptons Real Estate Association.

The latest run-up in rates isn't reflected in the third quarter data, which reflects deals that mostly entered contract over the summer.

Prices on the North Fork have nearly doubled since 2019, when the median price in the third quarter was $629,000. 

The number of transactions in the region fell 12% to 110 during the quarter.

The North Fork "is taking on the characteristics of the South Fork," Miller said. "Maybe the pricing isn't as high, but the housing market has evolved to perform like we've been seeing on the South Fork for the last decade."

It's challenging for buyers to find homes priced under $1 million that don't need extensive renovations on the North Fork, said Kristy Naddell, an associate broker at Douglas Elliman Real Estate in Cutchogue

That has reset the pricing levels for the region over the past few years.

However, Naddell said her recent experiences suggest the market has become more challenging for sellers.

She's seen more price cuts as well as homeowners taking their houses off the market if they can't get their desired price.

Buyers, many of whom are purchasing seasonal properties, have been hesitant to commit lately, Naddell said.

"It's very hard right now to keep deals together," Naddell said. "We're seeing in some cases multiple offers with inspections and contracts going out and then buyers pull out last minute."

In the Hamptons, Miller attributed the price drop to a change in the mix of the types of homes that are selling. Deals priced between $1 million and $5 million made up two-thirds of all sales in the third quarter.

Recently, deals above $5 million had represented a greater share of all sales, which helped push prices higher, but there's been fewer of those properties coming up for sale, he said.

Overall, the number of houses for sale at the end of the quarter dropped 22.5% in the Hamptons to 973, data showed.

"We're not seeing the top of the market — $5 million or higher — dominate like it used to," Miller said. "That's played a role in the median coming down."

Competition ratcheted up on Long Island, excluding the East End, during the summer. The number of homes that sold for above asking price hit an all-time high at 62.2% during the third quarter. The previous high was the third quarter of 2025, at 60.5%.

That reflects strong demand overwhelming a limited supply of homes for sale, Miller said. The number of listings for houses and condos rose by 3.4% year over year to 5,053 on Long Island, excluding the East End, at the end of September.

Still, listings are less than half what they were in the fall of 2019 before the pandemic brought heightened demand that drove available houses for sale much lower, and the market has yet to recover.

"The problem comes down to Long Island before the pandemic was not keeping up with development and the pandemic essentially exaggerated the problem," Miller said.

Higher mortgage rates are unlikely to convince homeowners now is the time to sell, Miller said.

The average 30-year fixed mortgage rate climbed to 7.4% this week, its highest level since 2023, and a full point higher than it was in early July, according to Freddie Mac. 

That has increased many buyers' monthly payments by hundreds of dollars per month, Newsday has reported.

Buyers looking for homes around $900,000 in Nassau County — which was close to the median price in August — often face monthly payments of $6,000 or more, including taxes and insurance, said Ed Svec, an associate broker at Compass in Rockville Centre.

The swift rise in rates could lead some buyers to postpone their searches this fall, Svec said, but he believes the meager inventory on the market will continue to push prices higher.

"Buyers are definitely stretched," Svec said. "However, at the end of the day, if inventory stays low, the prices should stay stable."