Bloomberg presented his preliminary budget earlier today. While there certainly was coverage in the local and nationwide press, one small bit seems to have been overlooked. Thanks to the readers that brought this piece of information to our attention. It seems that Bloomberg had the common sense to arrange the budget to accomodate for the potential shortfall in real estate transaction taxes.
From the NYC website:
New York’s real estate market is expected to slow, however, with a 10% decline in home prices, a 14% decline in home sales over the next few years and a significant decline in real estate transaction taxes that have buoyed the City’s tax revenue in the last few fiscal years.
Bloomberg certainly hasn’t been holding back any punches when it comes to real estate. In an environment where real estate economists have been predicting nothing but gains, Bloomberg has joined the ranks of the unconvinced.
Isn’t NYC too “special” for it’s real estate values to ever fall? This isn’t just another Bubble Blogger or Doom and Gloom Economist making predictions of a decline, this is the Mayor expecting a 10% decline in home prices. That’s a rather precipitous decline for an asset that “doesn’t ever go down.”.