Are you prepared for another 22% increase in your property tax bills?
Although it appeared that the real estate market had plateaued and was finally subsiding after a frenzied year of home buying and over paying in bidding wars, one new set of data suggests rampantly rising property prices could be setting up property owners for supersized property tax bills.
Property Values & Your Property Taxes
Over the past 18 months we’ve seen national home prices surge at their fastest pace since before 2008. Nationally house sales and pending sales seemed to slow, flatline and begin to show signs of a decline beginning in April 2021. This especially seemed true in NY as so many people fled.
Unfortunately, Redfin is now reporting that even in Nassau County, NY the median home sale price is up 22.7% over the past year.
Homes have also been selling 58% faster, with almost 60% more homes sold.
When you compare these numbers to Manhattan where homes are now selling under asking prices, and are taking closer to five months to sell instead of just days, it suggests this surge on Long Island is due to more people expanding outwards from the city.
Of course, property sales prices and values are directly tied to annual property tax bills. So, in this case, many Nassau County property owners were recently hit with tax hikes of 50% or more with recent reassessments of their home values. Another 22.7% rise effectively means an almost 75% tax increase in just a couple of years.
Inflation & Tax Rates
Annual property tax bills are made up of a combination of tax assessed values, multiplied by tax rates.
If and as tax rates are also increased property owners get hit with a double whammy of net increases in their bills.
Recent inflation and spending policies are quite likely to pour on the tax rate hikes for new bills. This includes school district taxes, and many other line items with their own individual tax rates. Some of which are not subject to ‘tax caps’.
More public and government spending and crises mean higher tax rates and new taxes. We expect to see that across sales taxes, income tax, and other real estate related taxes, in addition to the annual property tax.
Piling On The Financial Pressure
This is all just piling on the pressure for NY property owners. It is on top of other inflation in living costs. Inflation that has easily topped 30% on grocery and daily essentials, gas, and home improvement projects.
As a result residents are pinched between falling net incomes after taxes, and rising prices on their expenses.
Now is the time to challenge your property tax assessment and bill, and save what you deserve.