On the heels of the new federal tax overhaul, some affluent areas are seeing their housing markets cool off. Westchester county home sales have dropped significantly in the swanky New York suburb.
What’s Up With Westchester County Home Sales?
Westchester County, New York has the distinction of being one of the most tax-burdened counties in America. A big commuter county, many of Westchester’s residents work in New York City, some 30 miles south.
High property taxes have always been a concern for Westchester County residents. However, the new federal tax law is making things tougher. Capping SALT deductions at $10,000 falls well below the average $17,179 that residents pay.
State And Local Taxes are able to be deducted off a federal tax return. The new tax bill caps those deductions at $10,000. At $17,179, that leaves Westchester county residents with an additional $7,179 to contend with.
As a result, Westchester County home sales are dropping.
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.
This is not an unanticipated effect. With the additional cost burden of buying a home, it’s understandable that buyers are more hesitant. It was widely anticipated that certain areas would feel this impact. Westchester county may be a more unique circumstance since the property taxes are already so high.
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