Manhattan Market Blinks Ahead of Tax Overhaul

Homebuyers, particularly in the mid-to-higher range of the market, may benefit from lower home prices if buyers are impacted by a higher tax obligation and/or are reluctant to make their purchase until they fully understand the ramifications of the tax bill. We may see a small but meaningful adjustment in home prices across the board here in New York as sellers who need to sell will have to be more realistic with pricing. This could likely offset some, if not all, of any increased tax liability. However, we may also see a decline in housing inventory, as sellers who are not under pressure to sell may choose to hold on to their asset to allow for continued appreciation, rather than settle for a more modest price point. Sellers who do choose to put their units on the market may benefit from tighter inventory, but expert marketing will—more than ever—be crucial to achieving the desired result.

I am a landlord, and I can tell you that the way we tax is stupid. It advantages me (and, surprise, Trump and his ilk) at the expense of almost everyone else. A transaction tax is the way to go: any time money changes hands, you pay the government for the "service" of maintaining a means of exchange. No excuses, no exceptions. Yes, that kind of tax is regressive. But markets work best when you PAY FOR WHAT YOU GET. If poor people are unable to afford food, shelter, clothing, we should give them money to help them, not pretend that our overly complex and easily-cheated system of taxes helps them. Lol, what a load...

With another term of de Blasio with a further erosion of basic services such as trash collection and more crime we will see a much bigger than 10% drop over the next four years. But at least every drunk and drug addict in the country will be welcome with open arms and subsidized (taxpayer funded) housing!

How people are willing to pay $1,000/sf and monthly maintenance fees on top of that is beyond me. Hey I love NYC, but how do you people do it??!! Do you all work on Wall Street?

I don't know much, but what I do know is the new "tax reform" bill just passed was a dagger straight through the heart of real estate values in the NY, NJ, CT, MA and similar states. Plus, the new law reduces to ZERO the deductibility of second or home equity loans completely! The incredible detrimental effects of this devastating new law, I believe will be more quickly felt and more injurious than Mr. Miller believes. Hang on for a quick fall in home values.

We will see what prices do in 2018 as the economy accelerates and business thrives.