By Tyler Durden
It appears the drop in home sales that has afflicted Manhattan and wealthy tri-state-area enclaves like Greenwich, Conn. is spreading to Westchester County, the suburban enclave directly north of the Bronx According to Bloomberg, sales fell 18% in the second quarter compared with a year earlier, marking the fourth straight quarter of declining sales.
Purchases in the northern suburban county — which shoulders the biggest property-tax burden in the U.S. — plunged 18 percent in the second quarter from a year earlier, the most since 2011, according to a report Thursday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. It was the fourth consecutive quarter of sales declines.
“We’re seeing buyers take a second to understand the math,” Scott Elwell, Douglas Elliman’s regional manager in charge of Westchester and Connecticut, said in an interview. “They’re spending more time with their accountants and really understanding how this plays out.”
The reason, according to Bloomberg, is that home buyers have been deterred by the county’s high property taxes. Federal rules approved in December set a $10,000 limit on deductions for state and local taxes, which is nearly half the $17,179 average tax paid by Westchester residents in property taxes …read more
Source:: Zero Hedge