Are property prices still rising? What does it mean for your NY property taxes?
Some Realtors and news sites say that NY property prices are still rising. How can that be true if we are in a new recession? What will it mean for your next property tax bill?Sales Down, Prices Up
Across America real estate closings and completed home sales stalled out as states were locked down, businesses were barred from doing business, and residents were put into isolation. According to data compiler PropertyShark,
NYC residential sales
have fallen every month since January, to new historic lows.
PropertyShark also reports NYC property prices are up 5% year over year. Zooming in, Zillow reports Nassau County home values were up by 0.2% year over year as of March 2020.What’s Going On With The Data?
How are prices rising in the wake of COVID-19 restrictions and current economic uncertainty. If sales are down by 50%, why haven’t prices followed?
It is highly probably, and almost certain that if these sales trends continue that prices will fall in line as well. Many other data points suggest we are in a worse crisis than the Great Depression. If that lasts, there is no reason to think property prices won’t reflect that over the second half of 2020 too.
For know, this glitch may be attributed to a variety of factors, including:
Large builder incentives masking true values and sales prices
A lag in data being reported
Delays in recording sales which may have gone under contract months before COVID19
A furious rush to complete purchases before lenders shut down and to get money out of the bank and into the safety of real estate
There are certainly many, many New Yorkers who have been fleeing to destinations like Florida and the Turks & Caicos Islands which have no income taxes, and much lower or no property taxes. As well as to enjoy more home for their money in a sunnier and healthier destination.
Many buyers will certainly be distancing themselves from some types of properties. Like condos, office buildings, and vacation rentals.
Yet, others may be upsizing to gain more space. If you are going to be quarantined and have to work from home, with your kids doing home school, you may need more space to stay sane.The Double Hit
Higher property sales prices bring higher property taxes for new owners and their neighbors. At the same time expect authorities to raise taxes to pay back all the trillions of COVID-19 relief and stimulus. There will be plenty of excuses about higher costs, even though many costs should have been eliminated, and could be.What To Do
Whether NY and Nassau County property prices continue to rise or crash to new lows, either way, you need to appeal your bill. The odds are that you are being grossly overcharged. Bills will go up more if unchallenged. If prices do follow sales volume down, you deserve a big break on property taxes. You still have to get help asking for it, but that’s what we’re here to help you do.