Bank of America has now joined the Federal Reserve in reversing its forecast for a new recession. What will it mean for your property taxes?
The State Of The Economy
New data being published shows national GDP growing well. Rather than falling into a recession as projected, some major spokespeople claim we have dodged that bullet.
Many consumers and business owners may not agree. They are not seeing this in their own incomes, investments, and other finances. Many have been experiencing the opposite.
Yet, it is possible that we could be entering a new bull run phase of the economy. Or it may be that a small handful of companies and individuals are seeing their wealth and revenues grow so much that it is creating misleading data points. Showing averages that the vast majority are not seeing in their own lives and business.
What A New Bull Run Economy Means
New optimism alone can have a big impact.
This includes a renewed push to raise interest rates further, to avoid an overheated economy. Which will further fuel inflation.
Gas prices are already surging again. A simple candy bar can now cost $4 at the dollar store. A small order of french fries at McDonalds is now close to $3. There’s no telling how high prices may go.
More confidence in growing prices and economic activity is also likely to lead to more investment. Including in real estate. Where regular home buyers, investors, and business owners may be more confident in paying higher prices.
In turn, that translates into higher tax assessed values on homes and commercial real estate. Then in turn, higher annual property tax bills.
What If We Do End Up In A Recession?
What if they are wrong, and we do end up in a new recession, or deep economic depression?
This would likely mean retirement account values tank further, and layoffs grow. Tax rates may well need to be raised further in order to provide some basic level of universal income to offset mass unemployment due to the rise of AI. Which again means your property taxes could be much higher next year.
Whether you are bullish or bearish on the near term outlook for the economy, now is the time to get ahead by correcting your property tax assessment, and reducing your bill.