Welcome to the New York housing slump

Prices are heading down in the city and the nearby suburbs

TRD New York /
Dec.December 14, 2018 09:00 AM

Westchester, New York (Credit: iStock)

The long-awaited slump in New York’s housing market has arrived.

Home prices are heading down in the city itself and in its suburbs, according to Bloomberg. Buyers are pulling back thanks to years of price increases, the new federal cap on state and local property tax deductions and an increase in mortgage rates.

Home sales are dropping throughout the country, and the appreciation rate is especially falling around New York. Prices across the country rose 4.8 percent in the third quarter compared to last year, while they rose just 4 percent in the 12 counties including and surrounding New York City, statistics from Attom Data Solutions show.

In Westchester County, single-family home sales fell for a fifth straight quarter. Purchases also fell in the Long Island suburbs and in Bergen County, New Jersey, which experienced a 6 percent drop.

Buyers have started to push back on high property taxes, often asking if owners have appealed their tax bills with the county or seeing if they can rent their future homes before buying them.

Agents close to Manhattan are feeling a palpable slowdown, and Halstead broker Sharon Shahinian told Bloomberg that sellers need to be realistic about what prices they can expect to get.

“It’s a great time for buyers, so it’s not all doom and gloom,” Shahinian said. “But you have to manage sellers’ expectations that what they could have gotten two years ago, a year and a half ago, they can’t get now.” [Bloomberg] – Eddie Small

Related Articles

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

Lennar reports 13% uptick in Q3 profit amid sluggish housing market

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Racial inequality in homeownership across US is sharpest in New York: report