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Vol. 23 / No. 8 August 2018 Westchester Realtors Hit Back on Reports of Troubled Market By John Jordan WHITE PLAINS—Westchester residential brokerage ond quarter report released by HGMLS. executives and industry analysts responding to mul- Westchester County The second quarter HGMLS statistics show that tiple trade press reports of a troubled Westchester Second Quarter 2018 Data single-family home sales in Westchester County fell housing market caused by the impacts of the cap on 4.8%, while the median sale price for a single-family state and local taxes, hit back saying demand is still Number of Sales home rose 6.1% to $710,800. While single-family inven- high and prices are rising. Single-Family Homes 1,552 -4.8% tory rose 4.8%, the report, published in the July edition Relying on the second quarter home sales market Condominiums 333 -7.2% of Real Estate In-Depth indicated that inventory was statistics released by the Hudson Gateway Multiple Cooperatives 470 -10.6% still low and that market dynamic was causing home Listing Service last month, they stress that homeown- 2-4 Family 156 +6.1% prices to rise countywide. ers are not rushing to put their homes on the market, Total 4,415 -5.7% E.J. McMahon, founder and research director for nor are they cutting their asking prices, as the trade the Albany-based non-profit think tank Empire Center newspaper and digital news outlet reports suggest- End of Quarter Inventory for Public Policy, in a July 17 blog entitled “A SALT Cap ed. While the $10,000 SALT cap imposed by the fed- Single-Family Homes 3,117 +4.8% Surprise (So Far)” noted that in high-taxed areas such eral tax reform law passed earlier this year may have Condominiums 420 +1.9% as Westchester, Nassau and Suffolk counties, home a greater effect down the road, all agree that the new Cooperatives 580 -23.3% prices are rising and inventory continues to be low, law's present impact has been minimal and has not 2-4 Family 222 +2.8% which would be counter to some press reports that cut into the intense demand that exists for housing in Total 4,339 -0.5% many homeowners are putting their properties on the Westchester, particularly for homes in the mid-price market and in some cases slashing their asking prices range that are in short supply. In fact, the chief culprit Median Sale Price in response to the federal tax law. for declining sales has been the dearth of quality for- Single-Family Homes $710,800 +6.1% McMahon, in an interview with Real Estate In- sale inventory, they charge. Condominiums $369,000 -1.6% Depth, said his opinions on the Westchester housing The multiple trade press outlets cited a non-MLS Cooperatives $170,000 +4.8% market are based on statistics and analysis released report that indicated home sales in Westchester fell 2-4 Family $487,750 +7.2% by the HGMLS. 18% in the second quarter. HGMLS officials toldReal In his blog, McMahon stated a recent press report Estate In-Depth the statistics cited in the trade and that suggested Westchester’s lower sales in the sec- digital press reports were not based on the final sec- Source: Hudson Gateway Multiple Listing Service, Inc. Continued on page 2 DEC’s Air Permit Denial Shuts Down CPV Valley Energy Center By John Jordan WAWAYNADA, NY—The decision by the this facility has not submitted an applica- New York State Department of Environ- tion for, nor has been granted, this type mental Conservation earlier this month of permit.” to deny a critical air quality permit has all The DEC continued, “Facilities of but shut down operations at the fledg- this size and nature must be subject to ling and controversial CPV Valley Energy the most rigorous air pollution controls Center here. to ensure the public is protected, and Knowledgeable sources tell Real Title V permits provide for greater trans- Estate In-Depth that Competitive Power parency and community input prior to Ventures, the owner of the 680-mega- authorization.” watt gas-fired power plant, was sur- Tom Rumsey a Competitive Power prised by DEC’s denial of a renewal of Ventures spokesman, told Real Estate an air state facility (ASF) permit on Aug. 1 In-Depth, “At each step of the process, that halts operations at the plant. we have worked collaboratively with The DEC released a statement that regulators at every level of government. noted, “DEC denied this request be- As the Supreme Court-State of New cause the current permit does not meet Continued on page 2 current regulatory requirements. Specifi- cally, revisions of the applicable regula- tions now require a Clean Air Act Title V An aerial view of the CPV Valley Energy Center in Wawayanda , NY. permit to operate this type of facility and INSIDE SPOTLIGHT ON Latimer Hopes Deal is Worked Out On Co-Op Disclosure Legislation By John Jordan WHITE PLAINS—In an exclusive inter- altors and the Building & Realty Institute view with Real Estate In-Depth, West- of Westchester and the Mid-Hudson Re- chester County Executive George Lat- gion—are on opposite sides of the issue imer said he is hopeful that issues can at the moment. However, he believes Kerri Stretch be addressed in the next few months to there is a “sweet spot” for possible see page 11 allow a bi-partisan co-op disclosure bill compromise on at least one contentious VIEWPOINTS ................................. 4 to come before him for signature. issue surrounding the legislation. County Executive Latimer, while not HGAR has been a long-time advo- LEGAL CORNER ............................. 5 taking sides in the debate, noted that cate for co-op disclosure legislation RESIDENTIAL ............................. 6&7 Realtors and building industry groups— and has stressed that such a law would PEOPLE ................................... 9&10 the Hudson Gateway Association of Re- provide uniformity and predictability to HGAR UPDATE ..........................11,12 EDUCATION/CALENDAR ...............13 LEGISLATIVE/BARRISTER ..............14 TECHNOLOGY ...............................19 Westchester County Executive George Latimer COMMERCIAL ..............................20 MORTGAGE /FINANCE ..................21 the co-op purchase process that would PUTNAM ..................................... 22 benefit all parties involved. Similar leg- islation has already been enacted into law in the Village of Hempstead (Long Island), Suffolk County and Rockland Section Two County, and there has been no negative impact on the co-op housing market. WESTCHESTER Continued on page 3 SUPPLEMENT 2 | NEWS Real Estate In-Depth | August 2018 Westchester Realtors Hit Back on Reports of Troubled Market Continued from page 1 ond quarter was due to the new tax law ter Homes and Gardens Rand Realty, be falling, and at present demand is still “If this was a true panicked situation, “simply makes no sense.” said that despite the trade press reports, high; sale prices would be declining they would be reducing, reducing and “The homeowners most likely to be the Westchester residential market is still instead of going up; the listing retention reducing until it is sold,” she said. “That is looking at higher federal taxes under the a seller’s market and that although there rate would go down, but in fact it is still not happening.” TCJA are childless couples in the high- has been a recent uptick in inventory, going up; the days on market would be While there has been some down- est-taxed downstate suburban commu- demand still far outpaces supply in most going up, but at present they are still ward pressure on luxury sale prices in nities. Why would anyone in such a posi- housing categories, with the exception falling; and inventory would rise, but at Bronxville, she attributes that to high tion delay listing their house in what’s of luxury housing. present it is flattening and is down for inventory for luxury homes and slower clearly a seller’s market characterized by Rand said, “The federal tax law is the year as compared to 2017. demand. rising prices? If anything, you’d expect impacting the market on the margins. He added that if the SALT cap was so “There does not seem to be any such homeowners to be rushing to the I think that the market would be even harmful to the market, the lower-priced high-end seller panic mode at all,” Caro exits. But it just isn’t happening—not yet, stronger without the tax cap.” He ex- cooperative market would see higher noted. “With that said, buyers are not anyway,” he stated. plained that the SALT cap is impacting sales, but in fact saw a much larger flocking to high-taxed properties.” HGMLS reports, the luxury home some prospective homebuyers who sales decline in the second quarter than She noted that the ultra-luxury market sales market was soft prior to the enact- are on the borderline of qualifying for single-family homes, falling 10.6% as ($5 million and above) has been active. ment of the federal tax law. In fact, hom- mortgage financing and also some ho- compared to a year earlier. Caro said that the SALT cap is an is- eowners in the high-end (multi-million- sue and has some buyers expressing dollar homes) will likely benefit from all "None of this is consistent with the Tax frustration that New York and Westches- the provisions of the federal tax law. ter in particular are paying more than If the federal tax law was having a Reform Act having a significant impact their fair share in taxes. Caro said she significant impact on the Westchester on Westchester housing. It is having a supports Gov. Andrew Cuomo’s efforts housing market, the inventory of the to overturn the federal tax law, as well as move-up and mid-priced market, prized marginal impact, but the market is so some of the measures he has enacted to by millennials, would be plentiful.

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