Westchester homes sales plunged thanks to the new tax law

Property taxes are keeping buyers away

New York /
Jul.July 12, 2018 09:30 AM

Summit Estates at 4 Patrick Lane in Westchester (Credit: Toll Brothers)

The new federal tax law is scaring home buyers away from Westchester.

Sales in the county, which has the highest property-tax burden in the country, tumbled 18 percent in the second quarter versus a year earlier. That’s the most since 2011, Bloomberg reported.

Buyers are concerned they won’t be able to write off their steep property taxes. The new rules set a $10,000 limit on deductions for state and local taxes — below the $17,179 average that Westchester residents paid in property taxes last year, according to Attom Data Solutions.

“We’re seeing buyers take a second to understand the math,” Scott Elwell, Douglas Elliman’s regional manager in charge of Westchester and Connecticut, told Bloomberg. “They’re spending more time with their accountants and really understanding how this plays out.”

On June 30, there were 8.8 percent fewer Westchester homes in contract than on the same day last year, according to the report.

Luxury sales in the county have been notably sluggish. Properties spend 798 days on the market on average, a previous report said. [Bloomberg] — Meenal Vamburkar

 

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