The real estate market in Westchester County, home to one of the country’s largest property-tax
burden, has been on a roll. The approval of the tax reform will more likely have an impact on the market since it punishes
residents with even higher costs. The big question is: can the market continue thriving?
Cracks are already forming. The number of closed sales dropped, the second straight quarter. Purchase contracts are down as well. Those might be the first signs that buyers are wavering,
and that prices may need to adjust to reflect the now-higher
costs of owning a home in the well-to-do suburbs.
Right now everyone’s calling their accountant….. yes, we did it too. We found no answers because the IRS has not been able to create the guidelines to implement the new law. The situation gets more complicated when we include the Co-op corporations since they have very large underlying mortgages, and nobody seems to know how those will be treated when it comes to taxes and the pass-through effect that will end up affecting the home owner’s pockets.
We would be surprised if this doesn’t apply some downward pressure on the higher side of the
market. We could see a period of indecision on both the sellers and buyer’s side. Buyers will be looking for a formula that allows them to afford their home.
In real estate one amenity is king….. LOCATION. Those of us who love this wonderful county of ours, those who enjoy the proximity to NYC and all the wonderful amenities Westchester County has to offer are going to need to grab our calculators and make sure we run our numbers properly. At the end of the day a change in the tax code is not likely to discourage people from making decisions that are basically lifestyle decisions. People need to live somewhere and more likely we are going to live close to our jobs and send our children to the wonderful school districts we have. There are going to be adjustments in the market but we don’t know the real impact yet.
At GioHomes we are here to help. To us what really matter is what our client’s needs. How can we maximize their earnings and/minimize their loss? How can we help them transition in a seamless manner.