The housing market in the Lower Hudson Valley region has shown a slight slowdown in the second quarter, and experts blame the decline on the new tax law that limits the total state and local tax deduction.
“There was a slight decrease in activity and sales for the first time in quite a while,” said Ron Garafalo, president of the Hudson Gateway Association of Realtors, as he looked at the region’s second-quarter market reports issued recently by the Hudson Gateway Multiple Listing Service. “We’ve seen a larger level of decrease in the very high-end market.”
In Westchester, the number of single-family homes sold in the second quarter was 1,500, down by 3.9% compared to a year ago.
To compare, 1,643 single-family homes were sold in Westchester in the second quarter of 2016, the highest second quarter in recent years. The number of sales has gradually declined since, and experts have said the lack of inventory was to be blamed. The inventory of lower-to-mid priced properties is recovering, but it’s still lower than where it should be, experts said.
The median price of single-family homes in Westchester was $705,000 in the second quarter, down slightly by 0.7% from a year ago when the median was $710,000.
Rockland’s single-family home sales followed the similar pattern: The number of sales in the second quarter was 459, down by 2.3% from a year ago when the figure was 470.
The median price of single-family homes was $450,000, down by 4% from 2018 when the figure was $468,750.
“What irritates homeowners and buyers in Westchester and Bergen, and the other high-priced counties in the region, is that the tax reform was supposed to dramatically help them,” Rand said. “And instead of helping them, it’s done really nothing for them because what they’ve got in the lower (federal income tax) rate, they lost it in the SALT cap.”