The Putnam housing market surged in the third quarter, with sales rising and prices generally appreciating. Single‑family sales were up over 9% compared to last year’s third quarter, with the 326 recorded closings marking the highest quarterly total in over three years. Pricing for the quarter was a little more mixed, with the median price rising almost 4% but the average price down a tick. Indeed, pricing for the rolling year showed the same divergence, with the median up over 5% but the average up only 0.3%. We believe that the discrepancy between the average and median has a lot to do with the suppressive effect of the 2018 Tax Reform cap on state and local tax deductions (“SALT Cap”) on the high‑end of the market, which is holding down the average even while the overall strength in the market buoys the median. This is good news for the average homeowner in Putnam (outside the highest‑end markets), who is likely experiencing significant price appreciation and a robust seller’s market. Moreover, we believe that the market is eventually going to price in the effects of the SALT Cap, which will boost the higher‑end of the market and probably drive more widespread price appreciation by next year.