New York Real Estate Market Update: September 2026
September 21, 2026 | By James Chung, Licensed Associate Real Estate Broker
Mortgage Rates Approach 7% as Long Island Home Prices Reach Record Highs
The New York real estate market is entering the fall season with an interesting contrast: mortgage rates are climbing, making homeownership more expensive, yet home prices in many parts of our region continue to rise.
According to the latest market data from OneKey MLS, Nassau and Suffolk counties reached new record median single-family home prices in August 2026, despite higher borrowing costs and ongoing affordability concerns.
Meanwhile, Queens continues to see higher prices and more transactions, while Brooklyn's most desirable properties are still attracting considerable buyer competition.
For anyone considering buying, selling, or investing in New York real estate, the message is clear: Higher mortgage rates have not eliminated buyer demand, but they are making pricing, preparation, and local market knowledge more important than ever.
Mortgage Rates Approach 7%: What Does This Mean for Buyers and Sellers?
Mortgage rates are once again becoming one of the most important factors influencing the housing market.
According to Freddie Mac's Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage increased to 6.95% on September 17, 2026, up from 6.76% just one week earlier.
Recent 30-Year Fixed Mortgage Rates
Date | Average Rate |
August 27, 2026 | 6.66% |
September 3, 2026 | 6.71% |
September 10, 2026 | 6.76% |
September 17, 2026 | 6.95% |
The latest increase represents a 19-basis-point jump in a single week.
For buyers financing a home, even a relatively small change in the interest rate can have a meaningful impact on the monthly mortgage payment.
Consider a buyer obtaining a $600,000 mortgage with a 30-year fixed term.
At 6.76%, the monthly principal and interest payment would be approximately $3,894. At 6.95%, that payment increases to approximately $3,972.
That's roughly $78 more per month, or approximately $936 more annually, without factoring in property taxes, insurance, or other housing expenses.
For buyers purchasing a home in Queens, Brooklyn, Nassau, or Suffolk, where mortgage amounts can be substantial, these changes can directly affect purchasing power.
What Buyers Should Consider
Rather than focusing exclusively on the purchase price, today's buyers should evaluate the complete financing structure of a transaction.
Obtaining an updated mortgage preapproval, comparing rates and fees from multiple lenders, and understanding the property's total monthly carrying costs are important steps.
Depending on the financing program and transaction, buyers may also want to explore seller concessions or mortgage-rate buydown options with their lender.
What Sellers Should Understand
Higher borrowing costs also affect the selling side of a transaction.
Even when buyers are interested in a property, they may have less flexibility to increase their offer because of their monthly payment limits.
This makes establishing the right asking price particularly important.
A properly priced home may still generate strong competition, while an overpriced property can lose qualified buyers before they ever schedule a showing.
Queens Real Estate: Higher Prices, More Sales, and More Selective Buyers
Queens continues to demonstrate resilience, with both home prices and transaction activity increasing compared with last year.
According to Redfin's August 2026 Queens County housing market data, the median sale price reached approximately $791,352, representing an 8.7% year-over-year increase. The number of homes sold increased 9.6%, reaching 851 transactions.
Queens County Housing Market – August 2026
Market Indicator | August 2026 |
Median Sale Price | $791,352 |
Year-Over-Year Price Change | +8.7% |
Homes Sold | 851 |
Year-Over-Year Sales Change | +9.6% |
Median Days on Market | 58 Days |
Sale-to-List Price Ratio | 97.6% |
Homes Sold Above Asking Price | 20.6% |
However, the market is also showing signs that buyers are taking more time to make decisions.
The median time on market increased from 52 days a year earlier to 58 days, while approximately 20.6% of homes sold above asking price.
These figures suggest that demand remains present, but buyers are becoming increasingly selective about the properties they pursue.
What This Means for Queens Homeowners
For homeowners considering selling, the initial pricing strategy has become especially important.
A renovated, move-in-ready home that is competitively priced may attract significant attention.
A property requiring substantial renovations, however, needs to be evaluated differently. Buyers must account for improvement costs in addition to the purchase price and financing.
The same applies to multifamily homes, where tenant occupancy, legal use, rental income, and the property's overall condition can influence a buyer's decision.
A home should not automatically be priced at the same level as a recently renovated comparable property simply because both are in the same neighborhood.
The key is understanding what buyers are expecting from a property at a particular price point.
Brooklyn Real Estate: Strong Competition for the Right Properties
Brooklyn's housing market continues to demonstrate significant buyer demand, particularly for desirable properties that are well presented and appropriately priced.
According to StreetEasy's August 2026 market report, approximately 31.9% of Brooklyn homes sold above their most recent asking price, compared with 21.8% across New York City overall.
That means nearly one in three Brooklyn sales exceeded the asking price.
However, this does not mean every Brooklyn listing is attracting multiple offers or selling quickly.
The borough contains a wide variety of property types, including condominiums, co-ops, brownstones, townhouses, one-family homes, and multifamily investment properties.
Each segment can experience different levels of demand, pricing pressure, and market activity.
Why Property-Specific Pricing Matters
A renovated Brooklyn townhouse may appeal to buyers seeking a move-in-ready home, while an older property requiring significant improvements may attract a different buyer pool.
For two- to four-family properties, investors and owner-occupants may also evaluate potential rental income, legal configuration, tenant status, vacancy, property taxes, and operating expenses.
These factors can create meaningful differences in value, even between properties located only a few blocks apart.
With mortgage rates approaching 7%, buyers are increasingly conscious of how much they can spend on improvements after purchasing a property.
For Brooklyn sellers, understanding the competition within their specific property category is essential.
The properties attracting the most attention are not necessarily those with the highest asking prices, but those offering value that buyers recognize.
Nassau and Suffolk Home Prices Reach New Record Highs
One of the most significant developments in the September housing market is the release of new August sales data for Long Island.
Despite rising mortgage rates, both Nassau and Suffolk counties reached record median single-family home prices.
According to OneKey MLS, the median single-family sale price in Nassau County reached $911,000 in August 2026, representing a 4.7% increase from the previous year.
Suffolk County reached a median sale price of $760,000, an increase of 7.0% year over year.
Long Island Single-Family Housing Market – August 2026
Market Indicator | Nassau County | Suffolk County |
Median Sale Price | $911,000 | $760,000 |
Year-Over-Year Price Change | +4.7% | +7.0% |
Closed Sales | 881 | 1,119 |
Year-Over-Year Sales Change | -3.0% | -0.9% |
Available Homes | 2,259 | 3,129 |
Year-Over-Year Inventory Change | -0.4% | -3.9% |
Average Original Asking Price Received | 100.5% | 102.2% |
Average Market Time | 38 Days | 39 Days |
Source: OneKey MLS – Market Statistics
What makes these figures particularly noteworthy is that prices increased even as the number of closed sales declined slightly.
Nassau recorded 881 closed single-family sales, down 3.0% from the previous year, while Suffolk recorded 1,119 sales, down 0.9%.
Inventory also remained limited, with approximately 2,259 available homes in Nassau and 3,129 in Suffolk.
Suffolk's available inventory was approximately 3.9% lower than a year earlier.
Why Are Long Island Prices Continuing to Rise?
The latest figures are consistent with a market in which a limited number of available homes continues to support prices despite higher financing costs.
For homeowners, the important distinction is that mortgage rates and home values do not always move in opposite directions.
Higher borrowing costs can reduce purchasing power, but when the supply of available homes remains constrained, prices may continue to hold firm or increase.
Of course, broader county statistics do not mean every individual home has appreciated at the same rate.
Condition, location, property taxes, improvements, lot size, school district, and immediate competition all influence what buyers may be willing to pay for a particular property.
What This Means for Nassau and Suffolk Homeowners
For homeowners considering selling, the latest market data provide a reason to take a fresh look at their property's potential market value.
Even with mortgage rates approaching 7%, home prices reached new highs in both counties during August.
However, the strongest selling strategy remains one based on current buyer expectations and comparable market activity rather than simply choosing the highest possible asking price.
Suffolk's August market data also showed sellers receiving an average of approximately 102.2% of their original asking price, compared with approximately 100.5% in Nassau.
These countywide averages demonstrate how competitively positioned properties can perform, although individual sale outcomes can vary substantially.
What This Means for Long Island Buyers
Higher mortgage rates have not automatically translated into a substantial increase in available homes.
For buyers who have been waiting for prices to decline, the August data illustrate why monitoring both local inventory and financing conditions is important.
A property that meets your needs, fits your budget, and is supported by comparable sales deserves careful consideration regardless of broader national market headlines.
New York City Multifamily Market: What Owners and Investors Should Know
While the residential market continues to respond to changing mortgage rates and limited inventory, multifamily property owners in New York City are also navigating important regulatory developments.
One of the most significant issues is the upcoming rent-stabilized renewal guideline.
On June 25, 2026, the New York City Rent Guidelines Board adopted a 0% increase for qualifying one-year and two-year rent-stabilized renewal leases beginning between October 1, 2026, and September 30, 2027.
The adopted guidelines have been challenged in court.
According to reporting published September 16, Manhattan Supreme Court Justice Brendan Lantry permitted limited discovery into communications between the mayor's administration and the Rent Guidelines Board concerning the process leading to the rent-freeze decision.
The legal challenge raises questions about the process used to adopt the guidelines, but the discovery decision does not itself overturn the rent freeze.
The city maintains that the board acted lawfully after reviewing the relevant economic evidence, while the challenging landlords dispute the lawfulness of the process.
Property owners and investors should therefore distinguish between the rent guidelines currently adopted and the possibility of future changes resulting from litigation.
What This Means for Multifamily Property Owners
For owners considering refinancing, selling, or purchasing a regulated multifamily building, accurate financial and regulatory documentation is especially important.
Investors should carefully review legal and preferential rents, DHCR registration records, existing leases, rent collection history, operating expenses, property taxes, insurance, violations, and anticipated capital improvements.
A property's net operating income and its legal ability to generate future rental revenue can significantly influence its market value.
For sellers, organizing these records before marketing the property can help prospective buyers evaluate the investment with greater confidence.
The more clearly a property's income, expenses, and regulatory status are documented, the easier it becomes for buyers to make an informed valuation.
New York City's Housing Growth Strategy: A Long-Term Development Consideration
New York City is also examining how to address its long-term housing shortage.
In August 2026, the New York City Department of Housing Preservation and Development and the Department of City Planning released the draft Fair Housing Growth Strategy.
The report estimates that New York City needs approximately 700,000 additional homes over the next decade and proposes housing-production targets across the city's Community Districts.
For owners of vacant land, mixed-use buildings, and properties with potential for future development, housing-production policy is an important issue to follow.
However, proposed housing targets do not automatically change a property's existing zoning or grant additional development rights.
Any potential redevelopment should be evaluated based on current zoning regulations, applicable approvals, physical site conditions, and guidance from qualified architects, land-use attorneys, and other professionals.
What Does the September 2026 Market Mean for You?
The latest market developments highlight why real estate decisions should be based on local conditions rather than national headlines alone.
For homeowners considering selling: Recent price records in Nassau and Suffolk and continued activity in Queens and Brooklyn demonstrate that buyer demand remains present. However, higher financing costs make realistic pricing and strong property presentation particularly important.
For buyers: The combination of higher mortgage rates and limited local inventory makes preparation essential. Understanding your financing options, monthly payment limits, and recent comparable sales can help you make better-informed decisions.
For multifamily owners and investors: The focus should remain on sustainable income, accurate property documentation, current regulations, and realistic operating expenses.
The most important consideration is that every property is different.
A renovated single-family home in Nassau County, a co-op in Queens, a Brooklyn townhouse, and a rent-stabilized multifamily building will not necessarily respond to the same market conditions in the same way.
The Bottom Line: Local Market Knowledge Matters More Than Ever
September 2026 is bringing a combination of higher mortgage rates, record Long Island home prices, continued competition for desirable Brooklyn properties, and a more selective buyer environment in Queens.
The average 30-year fixed mortgage rate has reached 6.95%, yet limited housing supply continues to support values across significant portions of the New York metropolitan area.
For sellers, this creates an opportunity to evaluate their property's position in the market, while recognizing that today's buyers remain highly conscious of price and affordability.
For buyers, it reinforces the importance of preparation and evaluating each property individually rather than relying solely on national housing predictions.
Whether you are thinking about buying, selling, or investing, understanding the market within your specific neighborhood and property type is the foundation of a well-informed real estate decision.
Thinking About Making a Move? Let's Talk.
Whether you're considering selling your home, searching for your next property, or exploring an investment opportunity, I would be happy to discuss the current market and what it means for your individual real estate goals.
James Chung Licensed Associate Real Estate Broker 917-576-9550 917-727-5652 sellwithjameschung@gmail.com
Sources & References
The following sources provide additional details about the market information, statistics, and regulatory developments discussed in this article.
1. Freddie Mac – Primary Mortgage Market Survey
Weekly national mortgage-rate averages through September 17, 2026.
2. Redfin – Queens County Housing Market
August 2026 median sale price, annual price change, transaction activity, and time on market.
3. StreetEasy – August 2026 NYC Housing Market Report
Brooklyn and New York City sales above asking price and buyer competition.
4. OneKey MLS – August 2026 Market Statistics
Nassau and Suffolk single-family median sale prices, year-over-year changes, and county-level market activity.
5. New York City Rent Guidelines Board
Adopted rent-stabilized renewal guidelines for leases commencing October 1, 2026, through September 30, 2027.
6. New York City Rent Freeze Litigation
September 2026 reporting concerning the court's discovery ruling in the challenge to the adopted rent guidelines.
7. NYC Department of Housing Preservation and Development / Department of City Planning
Draft Fair Housing Growth Strategy, released August 2026.
Important Disclaimer
This article is provided for general informational and educational purposes only and does not constitute legal, tax, accounting, financial, mortgage, or investment advice. Market statistics reflect aggregate market activity and should not be interpreted as establishing the market value of any individual property. Market conditions may vary significantly by neighborhood, property type, price range, condition, legal use, occupancy, and other factors. Information has been obtained from sources believed to be reliable as of September 21, 2026. While reasonable efforts have been made to present the information accurately, no representation or warranty is made regarding its completeness or continued accuracy. Market statistics, mortgage rates, laws, regulations, and other information may be revised or change after publication. Different real estate data providers may use different geographic boundaries, property categories, reporting periods, and calculation methods. Their market statistics may therefore differ even when describing the same general area. Mortgage rates referenced are national averages published by Freddie Mac and do not constitute a mortgage quote, loan offer, or commitment. Actual mortgage rates, loan terms, fees, and qualification requirements depend on the borrower, lender, property, financing program, and prevailing market conditions. Information concerning rent stabilization, housing regulations, zoning, development rights, and pending litigation is provided for general informational purposes only. Property owners, buyers, tenants, and investors should consult appropriately qualified legal, financial, and other professionals regarding their specific circumstances. Real estate brokerage services are subject to applicable law and written agreements. Brokerage compensation is not set by law and is fully negotiable.
© 2026 James Chung. All rights reserved.
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