Happy New Year from Bronxville!
Looking back on the market from 2017, Bronxville Village had strong activity in the Single Family (Detached) Market. Closed transactions increased to 50 in 2017 from 42 in 2016. The sweet spot continues to remain under $3,000,000. The number of sales between $2,000,000-$3,000,000 and over $3,000,000 remained steady, however we did see a large increase in sales between $1,500,000 to $1,999,999 which contributed to a decrease in the overall median sales price to $2,350,000 in 2017 from $2,605,000 in 2016. The price per square foot remained steady at $670.
The increased inventory and sales of homes under $2,000,000 decreased the demand we have seen in past years for townhomes. While the median price point of $1,052,500 was off by only .4% over 2016, only 6 townhomes traded in 2017 as compared to 16 townhomes in 2016.
Despite the 55 New Condos built at Villa BXV, our Co-Op market remained strong. 41 Co-Ops closed in 2017 compared to 38 units in 2016. There where was an uptick in the median price to $535,000 in 2017 from $527,500 in 2016, however we did see a drop in price per square foot from $485 to $451; a 7% decrease.
Looking forward to 2018, we recognize we have some challenges. How the Tax Reform passed by Congress will affect Bronxville Village is the Million Dollar Question. Generally speaking, the decrease in the deductibility for the SALT deduction to $10,000 as well as the decrease in deductibility on mortgage interest on principle from $1,000,000 to $750,000 is considered a negative for the market and a disincentive for buyers. Governor Cuomo has spoken about new initiatives such as property tax deductions on State taxes as well as incentives for first time buyers. At this time it's hard to predict how these initiatives will impact the market.
Offsetting this not so positive news is many of our buyers come from NYC who are subject to local city taxes as well as state and property taxes which are also affected by the cap on SALT deductions. Losing that city income tax has often been looked at as a raise for many people moving to Westchester! Some of these buyers are also paying hefty tuition payments which even with the modest tax benefit continues to make Bronxville a desirable alternative. While we are seeing the prices decrease in Manhattan, continued growth in the financial markets creating wealth coupled with low interest rates will offset some of this undesirable news. Bronxville continues to be a popular area for those looking for an unparalleled community, short commute to Manhattan with consistently highly rated schools. History has shown that Bronxville tends to hold its value in uncertain times though the result may be less transactions. Pricing as close to market value is the best strategy for those selling.
Please do not hesitate to reach out if you would like to discuss the market in more detail. Also, contact a tax professional to discuss how this tax reform affects your family personally. The elimination of AMT coupled with changes in tax rates, changes to estate taxes, etc. will impact each family differently.
Cheers to a Strong and Steady 2018!