Could a weakening Long Island housing market provide the tax relief you need?
Despite overall bullishness on the American economy, cracks continue to appear in the nation’s housing market. Could this be the solution to the tax relief many New Yorkers are craving? What’s the downside? How can property owners leverage negative data into positive wins for their personal finances?
Slowing Home Sales
Recent months has seen reports of diving rents in San Francisco and weakening property prices in Manhattan. Now Zillow data shows declining health in the Suffolk and Nassau County property market.
According to Newsday Long Island while home prices have modestly grown by a little over 3%, more than 5% more inventory has been added to local listings, and sales are down between 2.2% to 4.4%.
Suffolk County Real Estate
According to Zillow, Suffolk County prices are now once again above their highs of 2008. Yet, it is taking an average of 122 days to sell a home. That’s well above the national average. Meanwhile 10.2% of homes in the county have negative equity and 4.2% are delinquent on their mortgages. 12.3% of listings have recently slashed their asking prices. Rental rates are down significantly, and that can directly impact values.
Nassau County Real Estate
Zillow reveals that Nassau County home prices are now an average of $100,000 higher than their peak in 2008. Yet, it takes even longer to sell a home here, at an average of 152 days. 5.3% of homeowners have negative equity. 3.3% are delinquent on mortgages. 15.3% of listings have been cutting their asking prices.
What Happens if Property Prices Come Down?
If prices come down, your Long Island property should be assessed at a lower value and save you money on annual property tax bills. If and when your annual property tax bill falls under the $10k mark you can potentially write it all off on your federal tax returns again.
If you are selling property during this period, it could provide some losses to offset earned income. The downside could be many are stuck in negative equity situations and find it much harder to sell.
If you do stay or buy during this time, just know that it is extremely unlikely that the powers that be are going to rush to reduce your tax bill of their own accord. You need to step up to claim and benefit from it. It won’t just be given to you. Property Tax Adjusters, Ltd. can help you make your appeal and get the tax reduction you are owed.