Licensed Associate Real Estate Broker
Based on activity during the first three weeks of January, buyer demand is already increasing and should continue into the spring. Inventory is beginning to come onto the market, even with cold and snowy conditions. Interest rates have come down and will continue to motivate more buyers to re-enter the market. I’ve also seen several buyers return after taking a break due to frustration with competition. The two main reasons they’ve decided to re-enter the market are slightly lower interest rates, with further decreases expected, and the expectation of more available inventory. Overall, I expect the spring market to remain strong, with higher sales, more listings, and more active buyers. This balance should help keep prices strong for sellers, while lower interest rates allow buyers to maintain more manageable monthly mortgage payments.
The word on the street is that rates are expected to come down slightly. If this happens, it will both help and hurt at the same time. Some buyers and sellers want to wait to see what ultimately happens. If it does occur, we hope to get an increase in inventory. It is strategic to plan for interest rates to come down slightly; some sellers who have been on the fence about moving will look to sell and go with the rate they currently have. The flip side is that we may see even more buyers enter the market, trying to take advantage. If a buyer is waiting for the rates to come down, my advice is to buy now! If rates drop, prices can increase, leaving these buyers in the same position as before with their monthly payments.
Licensed Real Estate Salesperson
What we’re seeing now is the early return of balance. Sellers who once sat on the sidelines are starting to re-enter the market, not because conditions are perfect, but because they’re becoming predictable. Homeowners are adjusting expectations, pricing more strategically, and preparing their homes with purpose. That trend should lead to healthier inventory levels heading into spring 2026. Many buyers from the city, the Hamptons, and even the North Shore who are looking to relocate can’t resist waterfront homes on the South Shore. Nothing beats the views of Fire Island, warm southwest breezes, boating opportunities, and nearby clean, sandy beaches. Ultimately, the 2026 spring market is shaping up to be competitive but rational.
Daniel Gale Sotheby’s International Realty
The real estate market on the South Shore is very town-specific. In areas where inventory remains tight, we are still seeing multiple offers and homes selling above the asking price. Sellers have become more comfortable with current interest rates, with many preparing and planning to sell their homes in the spring 2026 market. At the same time, buyers recognize that the market remains competitive and understand the importance of strong offers and favorable terms. January has already brought encouraging momentum, with both buyers and sellers expressing readiness to move quickly when the right property becomes available. Overall, it’s shaping up to be an active and exciting year for real estate!
Source: Fire Island News & Great South Bay News
