How Declining Home Prices Impact Property Taxes

Blog June 2, 2022 By Admin

We may have just experienced one of the fastest turns from a seller to a buyers’ real estate market. What does it mean for your property tax bills on Long Island?

Will you finally get some financial relief? Will we finally get some fairness? Or are you going to have to fight for the property tax break you deserve?


Home Sellers Are Slashing Prices

In just a matter of weeks we have gone from seeing house prices grow at a new record breaking pace, to seeing asking prices being slashed just as furiously by home sellers.

As many as 30% to 40% of home sellers have been cutting prices according to new data. That’s a pretty big deal.

This comes right on the heels of drops in the stock market and crypto market, and as inflation accelerates, and economists warn of a new financial hurricane coming.

It’s now like a race to get out. Home sellers know that if they aren’t picked by buyers now, chances are they will be stuck, and just see their home values fall underwater over the months and years ahead.


Prices & Values Are Coming Down

As pointed out at the beginning of the year, a slowing of home sales volume, leads to these asking price cuts, and in turn lower prices and values.

NY has already been experiencing some of the slowest growth in the nation on the housing front. At least since COVID hit. That’s while other markets were growing by 40% or more per year. Meaning Long Islanders could be even more at risk and see a more impactful hit as values come down.

Some cities around the nation are already seeing values down 10-15%. With similar trends being seen across the border in Canada, back in April.


What’s Next For Your Property Taxes?

We may have missed the boat to sell up and head south like many others. Many may quickly find that they owe more on their mortgages than their homes or business properties are worth. At the same time, higher interest rates, a declining economy, and high property taxes, are likely to mean fewer buyers are interested or capable of buying.

You’ve already felt your property taxes being raised over the past few years. We keep hearing more promises of fairness coming. While more breaks have been given out to firms like Amazon, which is now leasing out their spaces rather than keeping jobs as promised.

It could be another several years before tax assessments are completely reevaluated on Long Island. Meanwhile, we’re picking up tab for zombie homes, inflation in service costs, and more.

If your property value goes down, then your tax assessment should be reduced, and property bill should go down too. Of course, you aren’t just going to be handed that break you are owed.  You are going to need help appealing and getting that reduction. We are here to help you do that, and save all you can.