As we move further into 2026, the real estate market continues to be shaped by ongoing trends, both locally and across broader regions. Understanding our market’s unique characteristics provides valuable context for buyers and sellers seeking to navigate current conditions.
While many areas of New York and other parts of the nation are experiencing increased inventory, our local market continues to face a significant under-supply. In our area, there is currently just over a 4-month supply of homes available, compared to the 7 to 8 months typically considered “equilibrium” or a balanced market where there is not advantage to buyers or sellers. Prices have increased slightly and would expect that trend to continue.
The limited supply has noticeable effects on how long homes stay on the market and the behavior of buyers and sellers. In the fourth quarter of 2025, the average days on market for properties locally was 54, a figure that underscores the ongoing low supply. However, it’s important to note that even in an under-supplied market, there are boundaries. For example, more than 30 listings have been on the market for six months or longer, indicating buyer’s still want value.
It’s clear that inventory constraints also influence which types of homes sell most quickly. Three-bedroom houses— “starter homes” in Forest Hills—typically priced under $1.3 million, continue to sell briskly despite the overall shortage.
Interest rates have remained steady at around 6% in recent months, with international and national events occasionally nudging rates higher or lower. They have recently moved up nearly .2%.
As we consider how these financial dynamics affect homebuyers, it’s worth noting a recent shift in buyer behavior. Over the past six months, there has been an influx of new homebuyers who began their search after interest rates had already risen from historically low levels. Unlike earlier groups, these buyers have not experienced the disappointment of seeing rates rise sharply during their search, which may contribute to their willingness to enter the market.
