What’s in store for the NY real estate market and its property taxes this year?
It is true that we may be entering another year with plenty of uncertainty on the horizon. Yet, there do seem to be very influential factors already in play. Which seem highly likely to deliver predictable outcomes over the next year.
Rents And Property Prices
Rents and home prices seem almost impossible to predict for the next year. Not only due to so many potential wildcards on the table, but incredible disparity between statistics being published in the media, and what many real estate brokers, investors, and individuals are experiencing in real life.
The media continues to report that home prices keep going up, due to there being no homes for sale. Others are feeling that there are few serious buyers, and those in the market want to pay less and less for rent or purchases.
In fact, the NY Post reports that national rents have been falling for the past five months in a row. With the exception of NY, where it says rents are up a modest 4.5%. Neither of those data points may be relatable for most of those out there in the market today.
The exodus continues, with San Francisco, San Jose, and New York being the most undesirable places to move according to the latest data.
Generation Z are also increasingly seeking out more remote and affordable locations to move to. Forget Texas and Florida. They now make up some of the biggest percentages of those moving into places like Alabama, Utah, and Oklahoma.
AI And Unemployment
For all the conveniences and efficiencies many may be feeling that they are enjoying from AI and other new technologies, we should not at all be surprised when the statistics eventually have to admit the tremendous spike it has caused in unemployment.
A fact that will lead to many more property owners having to sell up or move out due to few new jobs being available.
Growing Financial Distress
Even if there are no further interest rate hikes in this cycle, already high living costs due to recent rampant inflation is continuing to catch up with millions of American households. More and more are defaulting on credit cards, business loans, and auto loans. Home loans are likely to be next. If those properties aren’t sold in time, they will become a financial burden that other taxpayers will end up funding through their own property taxes.
For all of the above reasons and more, we can expect taxes to continue to go up in 2024. Especially property taxes in NY. If you own property here, be sure that you are budgeting for these increases.
Buyers Become More Sensitive To Property Taxes
Due to higher interest rates, high property prices, utilities, insurances, and other living costs, expect property buyers to be even more sensitive to properties with high property tax bills when they are out there shopping and comparing options.
Your tax bill will be under more scrutiny than ever when it comes to selling. Don’t anticipate buyers wanting to pitch in to pay up your back taxes to enable you to sell either. Making it more important than ever to get help reducing your property taxes whether you plan to move or stay in place this year.