Where is the Spring in the Spring Scarsdale Housing Market?

At the beginning of every new year, buyers and sellers, in Scarsdale and throughout the area, start thinking about their personal real estate goals. Sellers purge clutter and polish their homes preparing to bring their properties to market and buyers assess their housing needs and polish their financing plans. In a typical season, the spring market kicks into full swing immediately after Super Bowl Sunday.

So how has the Scarsdale real estate market fared this spring compared to last?

In the first quarter of 2018 inventory was up, yet only 26 houses sold in Scarsdale. This represents a 46% decline in comparison to the first quarter in 2017.

The first quarter 2018 sale prices ranged from a low of $777,500 to a high of $6,750,000 with a median sale price of $1,600,500 and 83 average days on market. Average square footage was 4,583 sq feet and average lot size was .467 acre. Interestingly, the sales over 4M were very high priced at $5,975,000, $6,400,000 and $6,750,000.

In the first quarter of 2017, 48 houses sold in Scarsdale. The sale prices ranged from a low of $651,000 to a high of $4,125,000 with a median sale price of $1,777,813 and 138 average days on market. Average square footage was 4,299 sq feet and average lot size was .455 acre.

What can we take away from this? Buyers with exceptionally high incomes woke up on January 1, 2018 understanding that without doing anything differently, the changes to the federal tax provisions made them wealthier, and they pulled the trigger and bought spectacular homes in Scarsdale. Their income levels likely increased, despite losing virtually all the SALT in their financial diets, thus feeding their appetites for luxury homes in our beautiful community.

In contrast, professionals earning fine (but less extraordinary) livings are feeling more cautious about what the impact of the tax changes will mean to them. In other words, for this segment of the buyer pool, losing SALT made the prospect of buying a new home less tasty.

On a happy note, 6 houses went to contract in Scarsdale in just the two days of May 1and May 2, 2018. The list prices ranged from $795,000-$2,925,000. This suggests that Scarsdale's spring real estate market is heating up, now that the weather is warming up.

Losing SALT seems to have reduced the pulse rate of Scarsdale's current spring market. Fortunately, the arrival of long overdue warm weather is helping the spring market to bloom, even if later in the season than usual. The fact remains that fiscal responsibility in Village governance is more important than ever as most buyers ask themselves what level of monthly carry for homeowner costs they are willing to sustain.