Why does everything in real estate seem to be heading down, except for property taxes?
Government policies appear to be doing their job at reducing inflation in the real estate market. With the big exception of our property taxes. Which would have been the easiest way to reduce the pain of high living costs, without stripping away equity and incomes.
How much is at stake for property owners? How can you get your annual property taxes cut in line with how low your home value is heading?
Pending Home Sales Are Down
US pending home sales have been slowing down for months.Falling 20% year over year as of July according to Trading Economics.
The number of pending real estate contracts that have been canceled or fell through are rising too, and compounding the effects.
Home Sales Are Down
According to the National Association of Realtors, actual closed sales of existing homes had already fallen by more than 20% as of July.
Bloomberg calls it a ‘housing paralysis’, as buyers and owners with adjustable rate mortgage loans are reeling from interests doubling this year. Now at their highest since the 2008 Great Recession.
Home Values Are Heading Down
The above has finally begun to trickle down actual home values, following home sellers slashing their asking prices in hopes of cashing out before their properties devalue further.
Home prices have already begun moving into negative territory according to CNBC. WHile CoreLogic reports more homeowners are now even deeper underwater on their mortgages. With a national total over more than $300B in negative equity. As Bloomberg now admits we might have been in a housing bubble after all.
Rents Are Sliding Down
Even rents now appear to be decreasing. Several cities have seen a decline in rental rates of around 6% month over month, according to data from Zumper.
Property Taxes Keep Going Up
If everything else is going down, why are our property tax bills in NY even higher?
Technically our annual property tax bills are calculated by multiplying tax rates by tax assessed values.
So, if home values are going down, then tax bills should be as well. Just don’t expect a voluntary downward reassessment of your property for taxes any time soon.
Fortunately, you can reach out to Property Tax Adjusters, Ltd. and get help correcting your assessment and bill. Just make sure you beat the rush.