I’m sure you’ve heard that there is currently a scarcity of housing inventory virtually everywhere especially on Long Island in both Nassau and Suffolk Counties. The statistic you possibly are NOT hearing about, however, is that there is a significant decrease in activity, with fewer homes going into contract than ever before. So to put it a different way, inventory and the pace of sales is down!
When that happens, something called the “absorption rate” remains rather constant, as you can see in the chart below. The absorption rate is no more than the number of months to sell ALL the homes on the market. For example, if 100 homes were on the market and 100 homes sold over the past year, that would be a 12 month absorption rate. If however, 100 homes were on the market and 200 homes sold over the past year, that would be a 6 month absorption rate.
A normal market, that is a market favoring neither the buyer nor the seller holds a 5 to 6 month supply of housing. An absorption rate higher than 6 months is a “buyer’s market” while lower than 5 is a “seller’s market.” You can see this quite plainly in the chart just below.
With a clearer understanding of what the absorption rate means for housing, I’m sure you can see from the following chart just how strong a seller’s market it’s been in Nassau County right now for single-family homes!
Real estate absorption rate in Nassau County, NY, from June 2021 to February 2025.
The chart shows monthly inventory trends. As you can see, although absorption rates are up slightly over the summer months, the rate remains low and a very strong seller’s market. The main reason for the slight tick downward for the absorption rate is the extreme lack of inventory and not a lack of demand.
What this should mean if you are thinking of selling your Nassau County single-family home: The time to think is over! It is time to act and act swiftly before more sellers discover what you now know. The absorption rate has never been lower than I can remember in my 21 years as a licensed real estate salesperson. And there’s just no telling how long this seller’s market shall last. The real estate market is already transitioning in other parts of the country, and what happens elsewhere eventually makes its way to Long Island.
Call or text me at 516-429-9399 if you would like to know about market conditions and the absorption rate in your town or what your home could bring in today’s market, without any obligation – of course!
Last updated: March 2025. Click here to see past trends.
