Manhattan Residential RE Wrecked

Peter Boockvar on the impact of the lost SALT deduction, which is now hitting the numbers:

I’m going to whine again about the lack of the SALT deduction and its negative impact on the economy after seeing the stats yesterday on Manhattan residential real estate. According to Miller Samuel Inc. and broker Douglas Elliman, transactions in Q1 fell to 2,121, the least in 10 years and down 5.2% y/o/y. Remember back what Q1 2009 was like. It’s also the 6th straight quarter that purchases have fell so there is a supply issue here as well and a general slowing anyway. So at least in NYC, those lower mortgage rates did nothing to help as buyers for higher priced homes in high tax states reevaluate. Multiply this reaction to other high tax states and you have a real economic impact on your hands.

Double taxation is never well received.

Peter is the Chief Investment Officer at Bleakley Advisory Group, follow him on Twitter here.