Hudson County’s hot real estate market continued throughout 2017. Price appreciation remained strong by any measure, while sales volume and days on market both declined year-over-year. For-sale housing inventory remains extremely constrained leading to the continued price increases.
What 2018, will hold for the real estate market is yet to be seen. The recently passed Tax Cuts and Jobs Act will have some impact on the local market. The new tax legislation will cap the deduction of state, municipal, and local property taxes from your federal taxes to an aggregate total of $10,000. Mortgage interest deductions will also be capped at $750,000. In a high tax, high price area like the NY metropolitan region, both these changes will heavily impact local homeowners.
Good news coming out of the recently passed legislation is that the capital gains exemption will remain for the sale of your primary residence as long as you have lived in the home for 2 of the past 5 years. There were proposals to increase the residency requirement in previous versions of the legislation.
Here’s a look as how the market has been performing so far this decade.