A historic home in the Bay Crest Historic District, Town of Huntington, NY. Photo: Peggydowling / Wikimedia Commons, CC BY-SA 3.0 (cropped).

By Ron Lanzillotta & Mike Pesce, The Pesce & Lanzillotta Group, Berkshire Hathaway HomeServices Laffey International Realty

Mortgage rates have climbed for seven straight weeks, and Long Island home prices just set another record anyway. A new third-quarter report puts the median Long Island home sale at $782,000, the highest on record and the eighth straight record quarter. If you own a home in Dix Hills, Melville or anywhere along the North and South Shores, or you're trying to buy one, here's what the latest numbers say and how to use them.

The Q3 2026 Numbers: Record Prices, Thin Supply

Appraiser Jonathan Miller of Miller Samuel published his third-quarter Long Island report on October 8, covering Nassau and Suffolk outside the Hamptons and the North Fork. As summarized by the Melville Chamber of Commerce, the highlights are:

  • Median sales price: $782,000, up 4.3 percent from a year earlier and the highest on record for the eighth quarter in a row.
  • Inventory: 5,053 homes listed for sale at the end of the quarter. That's up 3.4 percent from last year but still 35.8 percent below the third-quarter decade average of 7,864.
  • Sales: Fewer homes sold than a year earlier, even with the modest gain in listings.
  • Bidding wars: More than half of sales went to a bidding war, back above the 50 percent mark.

The pattern is clear: chronically low supply is supporting record prices despite rising mortgage rates.

The county-level data from OneKey MLS points the same way. August single-family figures put Nassau's median at $911,000, up 4.7 percent from a year earlier, and Suffolk's at $760,000, up 7.0 percent. These monthly, single-family figures cover a different period and property mix from the quarterly regional and town reports.

Rates Are the Highest in Nearly Three Years

The backdrop makes those records more striking. According to Realtor.com's October 8 coverage of Freddie Mac's survey, the average 30-year fixed rate rose to 7.40 percent, its seventh straight weekly increase and its highest level since November 2023. A year ago, the same rate was 6.30 percent.

Here's what that gap means in principal and interest alone, assuming 20 percent down on a 30-year fixed loan. Taxes, insurance, fees and any HOA charges are extra:

  • At Nassau's $911,000 August median: about $5,046 a month at 7.40 percent, versus about $4,511 at 6.30 percent—roughly $535 more each month.
  • At Melville's $1.06 million Q3 median: about $5,871 a month at 7.40 percent, versus about $5,249 at 6.30 percent—roughly $622 more each month.

These are illustrative calculations, not loan quotes. Your own rate will depend on your credit, down payment and loan type. The practical takeaway is to consider the full monthly cost alongside the purchase price.

Melville: Prices Up 8 Percent, Inventory Down

Melville kept climbing in the third quarter. According to the Q3 2026 market update for Melville single-family homes and condos, the median sales price was $1.06 million, up 8 percent from $981,000 in Q3 2025. There were 55 closed sales, 4 percent fewer than a year earlier, and inventory at the end of the quarter was 45 homes, down 8 percent. Average days on market was 34.

In Q3 2022, the median in that series was $865,000. A bit more than half of Melville's Q3 sales—52.7 percent—closed between $1 million and $3 million, and that bracket grew 12 percent year over year as sub-$1 million sales shrank. That's a meaningful shift for first-time and move-up buyers comparing options in the area.

Explore our Melville guide and homes for sale and our recent update on Melville Town Center at Maxess and Baylis Road.

Dix Hills: Holding Firm at $1.25 Million

Dix Hills looks more like a plateau at a high level. The same Q3 2026 market series shows a median sales price of $1.25 million, down 1 percent from $1.26 million a year earlier, after a big jump between 2024 and 2025. Closed sales were 73, down 3 percent. Inventory was 61 homes, up 3 percent, and average days on market was 37.

About 71 percent of Dix Hills sales closed between $1 million and $3 million. For sellers, recent comparable sales remain important when preparing and pricing a home. For buyers, slightly higher inventory and a roughly steady median make listing history worth studying; negotiating room still depends on the individual property.

The Melville and Dix Hills reports use OneKey MLS data through September 30, 2026, and were updated October 6. A change in median price can reflect the mix of homes sold and does not measure the change in value of every home. See our Dix Hills guide and homes for sale.

What This Means If You're Selling

  • Low supply remains an advantage. With regional listings more than a third below the decade average, preparation and appropriate pricing matter.
  • Price from recent comparable sales. Higher rates affect the payment a buyer can afford. Review recent sales alongside current competing listings, rather than relying on last spring's strongest sale.
  • Understand your buyer's timing. A job move, lease deadline or other plans may shape an offer and closing date.
  • Discuss concessions in advance. Some buyers may request help with closing costs or a rate buydown.

What This Means If You're Buying

  • Start with the monthly payment. Work backward from a number you're comfortable with, including Long Island property taxes, insurance and other ownership costs.
  • Get pre-approved. Understand your financing before making an offer in a competitive market.
  • Compare lenders and buydown options. Review rates, fees, terms and the length of time any payment reduction lasts.
  • Read the listing history. Days on market and price changes help frame questions about an individual property.

Thinking About Buying or Selling on Long Island?

Every town, and often every street, moves a little differently. Ron Lanzillotta offers local guidance for Dix Hills and Melville. Ron and Mike can review recent sales and available homes with you across Long Island, including Huntington, Syosset and Massapequa.

Contact the team at 516.888.9711 or info@pl-team.com, or browse homes on LIPropertySearch.com.

Published October 12, 2026. Market figures and mortgage-rate comparisons are dated as noted above. Availability and borrowing terms can change.

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