Peak home buying and selling season is coming to New York. For many it could be the chance to move and escape the state’s high taxes.
Between the high daily cost of living in NY, and the added burden of state income taxes, and extreme property taxes, many may find selling up and moving the only way to escape the burden. It can be difficult, both for young families, and for the numerous boomers to keep up, get ahead, and to preserve finances in this environment. Especially with such complicated, frequently flawed, and uneven taxes. The next few months could present new opportunities for many to get a fresh start, but there could be additional challenges this year too.
Summer is the peak home buying season. As the weather begins to warm, and kids get out for school, home buyers start getting active. The National Association of Realtors reports that 2017 started with a flurry of buying activity, which set a new 10 year high. Recent surveys of home builders show new highs in confidence and an early start to home shopping activity too. That could yield a busier summer of real estate transactions, enabling more sellers to cash out and move to cheaper destinations.
Unfortunately, there may be extra challenges for those hoping to sell homes in NY this year. Property prices have been rising. That may give sellers more equity to cash in on. It also makes it harder for would be buyers. This is compounded by being in a rising interest rate environment, which can limit mortgage borrowing ability, in an already tight loan market. Recent investigations and news reports have also highlighted the extreme disparity in property tax bills between neighbors. While properties may see tax bills change after a sale, it can be more challenging for those who have allowed their bills and assessments to spiral out of control compared to their neighbors.
There is opportunity, but it is a short window. Once kids head back to school and fall weather starts kicking in most buyers will be out of the market. The further we get into summer the more competition sellers may face from other sellers and new construction.
For those that want to stay in New York, downsizing locally may be an option. Or, along with those that have trouble selling, there could be some help found in appealing property tax assessments and bills. That can make things easier if staying in place, as well as when marketing a property for sale.