After sizzling throughout 2018, the Hudson County housing market slowed dramatically in the first quarter of 2019, with sales down sharply and price appreciation diminishing. Sales were down almost 15% overall from last year’s first quarter, and down for each property type. And pricing was relatively mixed compared to last year’s first quarter, with the average price down over 4% for single-family homes, up almost 6% for multi-families, and flat for condos. Now, prices are still way up for the year, rising over 6% overall and up in each property type, but the trend is a little concerning for Hudson homeowners and sellers. We might be seeing some impact from the 2018 Tax Reform’s $10,000 cap on state and local tax deductions (SALT Cap), which particularly affected higher-income taxpayers, who are more likely to itemize their deductions and feel the pinch. And we are certainly seeing some reverberations from the slowdown of the Manhattan market. Going forward, though, we expect that the SALT Cap’s impact will eventually get priced into the market, and believe that the seller market fundamentals are strong: a growing economy, low interest rates, and low levels of inventory.
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