Special Weather STATEMENT in effect for:
New tax cut plan may have created shift in WC housing marketPosted: Updated:
President Donald Trump's new tax cut plan may have created a shift in the Westchester housing market.
The Trump administration's tax overhaul placed a $10,000 cap on state and local tax deductions (SALT), making the housing market in Westchester- with one of the priciest property taxes in the country- a little more intimidating.
"When they look at a property, they are concerned about the amount of taxes they'll have to pay," says Michele Silverman Bedell, broker/owner of Silverson's Realty. "The taxes could be $20,000 $30,000, $40,000 on a house."
Bedell says this could discourage buyers and convince potential sellers to downsize. It could also flood the market with inventory and force price reductions.
"Under $1 million houses are selling more briskly than the over $1 million market and a lot of that has to do with the taxes," says Jennifer Askowitz, associate broker at Silverson's Realty.
According to a new report by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate, home sales in Westchester plunged 18 percent in the second quarter from a year earlier. That is the highest amount since 2011.