The housing market is in a deep freeze as pending home sales have plunging to record lows. And yet, one corner of the East coast is experiencing the exact opposite nightmare, where bidding wars have become so vicious that even buyers armed with cold, hard cash can't secure a home.
Long Island, New York, has emerged as one of the nation's toughest housing market, with Nassau and Suffolk counties reporting roughly 36% fewer sellers than buyers, according to Redfin.
The frenzy stands in stark contrast to the national housing slump.
Pending home sales collapsed 7.3% in September, pushing the National Association of Realtors' index to a record low as soaring mortgage rates hammered affordability.
"Market conditions weakened in September due to fast-rising mortgage rates," said Lawrence Yun, chief economist at the National Association of Realtors. "Although job growth and income gains can support home purchases, housing affordability is more affected by changes in mortgage rates. Buyers and sellers may simply be holding back until mortgage rates move favorably."
However, Long Island sellers are calling the shots.
Retired orthopedic surgeon Frank DiMaio discovered just how ruthless the market had become after offering $2.3 million for a luxury townhouse in Woodbury. DiMaio lost the property when the seller went with another offer, even though he had already signed the paperwork and wired a $230,000 deposit.
"I've never experienced anything like this," he told the New York Post.
The couple eventually secured another home in Oyster Bay, but only after offering $100,000 above its $1.99 million asking price.
The madness extends beyond luxury properties. A Plainview home listed for $999,000 attracted six offers before selling for approximately $151,000 above asking, according to the Post.
Real estate agents blame a severe shortage of available homes, limited land for construction and homeowners unwilling to surrender the ultra-low mortgage rates they locked in years ago.
"Everything you're seeing is just recycled inventory," said David Cohen, an agent with Corcoran SRG Residential.