The Trump administration’s cap on state and local property tax deductions, combined with the increase(s) in interest rates by the Federal Reserve, are combining to do a number on home sales on Long Island.
Sellers in affluent areas are finding it harder to sell their upscale homes because the $10,000 cap on the deductions is complicating matters and would-be buyers are holding out for lower prices. The increase in interest rates is making for an interesting dynamic as in the short term, it is a contributing factor towards the downturn in pricing. However, the benefit of lower prices for Buyers is counteracted by the increase in interest rates, making it more expensive to borrow the money necessary to make a new home purchase.
Confusing times to say the least. Inevitably, there will be a “sweet spot” somewhere in the future, be it 6 months, 12 months, 18 months or more away, nobody can say for sure, where you can catch home prices at a discounted price point while still securing a loan interest rate at a fairly desirable number, thereby netting you ever elusive “best deal possible.” How long that sweet spot “window” of discounted home prices with favorable loan interest rates remains open, nobody knows. But at some point, that window will close and the cost to borrow will negate most, if not all, of the savings reflected in the decreased pricing.
For Sellers, the time to strike is NOW, before the full consequences of the revised tax plan are realized by the public at large during tax time in 2019. For Buyers, the time to strike is somewhere between now and when discounting on home prices is outweighed by the increase in interest rates.
When talking about Buying or Selling in affluent neighborhoods on Long Island, the need to seek out a true expert to help you navigate your way through this tumultuous time has never been greater. There are thousands of real estate agents that are salesman, but only a handful of well thought out, intelligent real estate brokers, that are capable of truly advising you and adding value through their expertise, knowledge and negotiating prowess.
The first step to a successful real estate transaction is to identify the agent/broker that you feel is a cut above the rest, with the ability and skill set to advise and counsel you through the process.
I am an attorney by trade, having practiced law for over a decade before making the switch to real estate brokerage. I know that I have the ability and skill set you will need, but I can’t call you, you have to take the first step and call me. I’m here to help!
Don’t be that person that after the fact, says I wish I had called Adam to help me. Call me today!
I can be reached at:
(516) 447-0366, or Adam.Kaplan@KaplanHomesLI.com.
I look forward to hearing from you.
#LawyerDoItBetter #KaplanHomesLI #BetterCallKap