Interest rates have dominated real estate headlines for years. According to Tracey Goodman-Rossetti, a licensed real estate salesperson at Signature Premier Properties with 35 years of experience, the real issue in East Meadow, New York, is not borrowing costs but a severe shortage of homes for sale. With only 29 active listings out of 11,700 total properties, buyers face an environment defined by scarcity, not affordability.
“I think people put a lot of hype on interest rates,” Goodman-Rossetti says. “They think that’s what’s going to guide the market, that that’s what’s going to make changes. I’ve been in this for a very long time. When I started, interest rates were 18%. Yes, the housing market prices were much lower, but we’ve been through these numbers before in the last twenty years.”
In East Meadow, the belief that lower interest rates will unlock more buyer demand and stabilize prices does not reflect the reality on the ground. Goodman-Rossetti argues that even a significant rate drop would have little effect where so few homes are available. The challenge is not affordability. It is fierce competition among buyers for a shrinking pool of listings.
Rate Cuts Cannot Fix Scarcity
The common narrative holds that falling interest rates will make homes more affordable and draw more buyers into the market. Goodman-Rossetti says this overlooks the fact that demand already far exceeds supply in East Meadow.
“For every person that is affected by maybe $10,000 to $50,000 a year if interest rates come down, there’s ten more waiting to buy that house,” she says. “That’s what I’m finding.”
Inventory has not recovered in over a decade. Goodman-Rossetti recalls when East Meadow typically had 170 to 180 homes on the market. Today, with only 29 active listings, buyers have few choices. This tight supply has pushed prices to record highs for the area. Now half of all homes in East Meadow sell for more than $1 million, a threshold once reserved for new construction.
“We’ve never had homes in the million-dollar range here historically, except for new construction,” Goodman-Rossetti says. “Now half of the houses in East Meadow are above $1 million, and it doesn’t have to be new construction. I’ve got something else in contract from 2005 that’s over $1.2 million.”
This surge in prices has redefined what buyers can expect. Homes under $700,000 are scarce, and those that do appear usually need significant repairs. The inventory shortage has raised the market entry point, making it harder for first-time and move-up buyers alike.
Inventory Drives East Meadow Prices
Goodman-Rossetti believes only a substantial increase in listings could shift the market toward a more balanced environment. She estimates about 100 new listings would be needed to begin rebalancing the East Meadow market.
“What we really need to watch for are any inventory changes,” she says. “We need a hundred people to list their houses for the market to become more of a buyer’s market. It’s not going to happen. I haven’t seen any change in the number of listings in a long time now.”
Even when new listings appear, they are purchased quickly, preventing any meaningful buildup of available homes. This cycle keeps inventory low, drives prices higher, and makes existing homeowners reluctant to sell. Sellers know they will face the same shortage when searching for their next property.
“As long as the inventory stays where it is, that is the only thing worth watching,” Goodman-Rossetti says. “But how is that going to happen?”
Goodman-Rossetti emphasizes that focusing on interest rates misses the larger issue. Rates affect monthly payments but do not create new homes or encourage owners to list. In East Meadow, where inventory has been tight for years, national interest rate policy has little immediate impact.
Scarcity Shapes Every Transaction
The effects of this scarcity are visible in every transaction. Goodman-Rossetti recently listed a home that drew 54 visitors in one weekend and received 15 offers, all above the asking price. The seller did not negotiate. The winning offer was chosen based on the buyer’s down payment and financing strength, not the highest bid.
This type of competition is now the norm. With only 29 homes for sale, each new listing attracts concentrated demand from buyers who have waited months or years. Under these conditions, sellers hold a clear advantage and pricing strategy matters more than interest rate fluctuations.
Goodman-Rossetti argues the industry should focus less on interest rate speculation and more on increasing housing supply. Until more homes come to market, sellers will hold the upper hand regardless of borrowing costs.
Supply Remains the Only Solution
The East Meadow market shows that high prices and fierce competition stem from a persistent lack of listings, not mortgage rates. Without more available homes, buyers will continue to face steep prices and intense bidding wars while sellers remain in control.
For now, the only number that matters is inventory. Until inventory rises, the market’s direction is unlikely to change.
