By Cindy G. Landis, Brokerage Manager, Bronxville Office of Houlihan Lawrence
Jan. 10, 2018: Happy New Year to each of you! It has been bitter cold outside, a great time to stay warm inside while our market here thaws.
The news on everyone’s minds is the new tax code; it places our local and regional real estate markets at crosshairs. On a positive note, experts have posited that changes in the tax brackets may offset some of the consequences of the SALT (state and local taxes) deduction losses. In some communities where many are already subject to the AMT (Alternative Minimum Tax), the impact of the new legislation may be less consequential.
The president of the National Association of Realtors, Elizabeth Mendenhall, issued this statement: "The new tax regime fundamentally alters the benefits of homeownership by nullifying incentives for individuals and families but leaves in place the exclusion for capital gains on the sale of a home and protects the mortgage interest deduction for second homes." Also of note, only mortgage interest on loans up to $750,000 may be deducted rather than the prior $1,000,000.
This is clearly a complicated analysis for local residents and potential purchasers as well. Houlihan Lawrence has hired consultants to assess the impact based on differing scenarios. Our agents have data and analysis available to share with home sellers to inform decision making.
Here are some of the highlights of 2017:
The single-family market was robust. Bronxville had a 19% increase in the number of closings in 2017 compared to the previous year: 50 houses changed hands versus 42. The average price per square foot remained unchanged at $670, indicating stability.
The decrease in median price simply points to more transactions in the mid- to low-end. The median price dropped to $2,350,000 from $2,605,000, 9.8%. The decline in the median sale price simply reflects the increased depth that the village market had in the lower ranges. The median is still the third highest in the last 10 years.
The sweet spot in the village is again the $2,000,000 to $2,999,999 range. There were 20 closings in this range, the same number as in 2016. This price range represented 40% of all sales in 2017 compared to 48% of all sales in 2016. Closely following was the $1,000,000 to $1,999,999 range: 16 closings--up sharply from 9 closings last year. Additionally, there were 2 sales over $5,000,000, the highest being $5,868,500.
The townhouse market was very quiet. There were 6 closings – the lowest number in the last 10 years. The price per square foot was $609, and the median was $1,052,500. Sales of high-end coops and sales of lower-priced houses crowded the townhouse market.
Village co-ops did well, again. The number of closings on co-ops was up nearly 8%, to 41, and the median rose to $535,000. The price per square foot dipped 7% to $451 but remains above the 2015 level of $441. Additionally, one co-op closed at the PSF (price per square foot) of more than $700!
Predictions: The positive effects of the climbing DOW and S&P may offset some of the issues we are now facing in the form of the new tax code. Demand for townhouses may return for those who desire lower school and local taxes with top schools, a fast commute, and the charm that Bronxville offers. Inventory will continue to rise here with the closings at Villa BXV.
Pictured here: Cindy G. Landis, Brokerage Manager, Bronxville Office of Houlihan Lawrence.
Photo courtesy Cindy G. Landis