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Prices are local .there is no such thing at this point as markets are falling universally .parts of westchester and Long Island are burning hot . Where we are in queens prices are climbing . Our city apartments are still appreciating.
You have a lot of undesirable stuff left that won’t sell .so prices are being reduced.
We have old homes by us that have been priced lower and lower over the years and still won’t move
Not more than 5 years ago when rates shot up to nearly 6%, in my area and the housing market came to a screeching halt. Developers dumped entire subdivisions and many builders went under. It's not rocket science to understand that buyers can afford less of a mortgage when rates go up.
But it's not just mortgages - it's the effect of higher interest rates on every other aspect peripheral to housing that is part of housing. Not only does this include suppliers to get the thing built - but also added costs to employers who have to pass the cost onto workers or consumers, who in turn have less to spend. Once the equilibrium of dollars in the system normalizes to historical levels - housing will drop like a stone in many places because lenders are not going to take the risk on marginal buyers as they have been in a "risk-on" environment where they had free money to play with. Couple that with crippling real estate taxes and demographics, and you have the coming housing decline. It's a combination of factors - not just one.
First, I'd be interested to know where rates shot up to 6% within the last 5 years.
Second, I'd like to understand how 4.75% and stricter underwriting standards overall are equivalent to 6.75% and laxer overall underwriting standards.
Housing is not like stocks .there can be 50 homes for sale but if my wife and your wife don’t like them we ain’t buying . Housing is highly subjective and personal .
It can’t be looked at like google stock . There is no such thing as a buyer for every home .some homes may never sell but it is no reflection on markets . No one likes your house
Nope. The STATE income tax is a much bigger hit, especially as you go up the income ladder. When you are in the 37% tax bracket, if you pay 100k in state taxes, you pay an additional $37k in taxes. That's a big hit, the biggest hit. People who live in these higher value property states are likely to have a higher income, thereby being more affected by it. I think this is going to result in a mass exodus from high tax locations to lower tax states, to the extent people are free to go. I would say they can more than ever with many people able to work online from home.
are you aware that SALT includes your Local (state/county/municipal) income taxes? I am.
It's not specific to you, but I wish all these anecdotes could be MORE SPECIFIC. "My property tax RATE is ___%" and "My top marginal state/local tax rate starts at $X and is Y%"
I see that as of now (per Google), IL has a 4.95% flat rate.
So if you're paying $100K in state income tax, your taxable income, after state-level deductions, is TWO MILLION DOLLARS.
are you aware that SALT includes your Local (state/county/municipal) income taxes? I am.
It's not specific to you, but I wish all these anecdotes could be MORE SPECIFIC. "My property tax RATE is ___%" and "My top marginal state/local tax rate starts at $X and is Y%"
I see that as of now (per Google), IL has a 4.95% flat rate.
So if you're paying $100K in state income tax, your taxable income, after state-level deductions, is TWO MILLION DOLLARS.
I cannot be more specific on a public forum. However, on incomes above $500k, the income tax rates amounted to an increase of 100% as compared to the lower incomes that were raised 67%. But you will be hard pressed to find that anywhere and the only reason I knew about it was that there was a tiny little paragraph about it in the paper one day. They removed the allowance to deduct property taxes to get around the state constitution, which only allows for a flat tax in Illinois.
We can argue all day about what the real estate market is doing and yes, to some extent it is local but I am guessing these same posters who are saying there is no decline were denying what was happening in 2008, too.
for example, here's the INCOME taxes for NY and NYC:
Quote:
New York state has a progressive income tax system with rates ranging from 4% to 8.82% depending on taxpayers’ income level and filing status. Living in New York City is more of a strain on your paycheck than living in the rest of the state, because the Big Apple imposes its own local income tax system on top of the state one. New York City’s income tax system is also progressive and rates range from 3.078% to 3.876%.
ed note: I laugh that NYC has a "progressive" system when the gap between high and low is 0.8%. I didn't keep looking to see what standard deductions, etc might be, but still.
I cannot be more specific on a public forum. However, on incomes above $500k, the income tax rates amounted to an increase of 100% as compared to the lower incomes that were raised 67%. But you will be hard pressed to find that anywhere and the only reason I knew about it was that there was a tiny little paragraph about it in the paper one day. They removed the allowance to deduct property taxes to get around the state constitution, which only allows for a flat tax in Illinois.
it doesn't matter.
If you say that you paid $100K in IL income tax, then you made $2MM of taxable income. Unless I've suddenly gotten horrible at math.
Someone is definitely trying to push a narrative. I am a real estate watcher and EVERY September there is a slow down because people don't want to move in the winter / school year. Come January it always starts up again until things are insane in April. It is dangerous that the press can control the narrative this way.
It's not a narrative, but housing sales are always higher in the summer than the winter. People don't want to pull their kids out of school, so they move in the summertime. But people need to stop with this paranoid "the press has an agenda" BS. The press reports the news; that's it. They are reporting objective statistics and in this country we do have free speech, narrative or not.
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