From CNN/Money:
NY, NJ highest payers of property tax
New Jersey and New York homeowners face the highest property taxes in the United States, according to a report released Tuesday by the Tax Foundation.
Of the top 10 counties ranked by median property taxes, five were in New York and five were in New Jersey. The Tax Foundation looked at data on 775 counties from the U.S. Census Bureau’s 2005 American Community Survey.
Westchester County, north of New York City, ranked No. 1 with $7,337 in median property taxes paid. No. 2 was Nassau County on Long Island, with $7,025.
In New Jersey, Hunterdon County, Bergen County and Essex Country ranked three, four and five, respectively.
The highest county on the list not located in either New York or New Jersey was Lake County, Ill., ranked No. 15. The median property tax paid in that county totaled $5,393.
Fairfield County, Conn. ranked 17 with $5,213 in property taxes paid.
The counties before and after those two exceptions were located in New York and New Jersey.
Joe Prante, staff economist at Tax Foundation, which advocates for tax reform, says wherever the housing boom has been big, the property taxes are likely to rise.
If property values fall, it will depend on local governments whether or not property taxes do, too.
“If local governments get used to the revenue, they may continue to raise taxes,” said Prante. “Or they can keep tax rates low and keep spending low.”
…
If property values go up there’s no justification to increase property taxes unless there’s a new cost to local budget, Roll said.Unfunded federal mandates, however, help push tax burdens onto state and local municipalities, which raise significant taxes from property values, Roll said.
Then property taxes “acts as a backdoor tax hike. The tax gets buried because people’s property taxes are often paid monthly with their mortgage,” Roll said.
From Marketwatch:
Housing chill strikes home
It’s not just homeowners and homebuilders that have a lot to lose if tremors roiling the real estate market turn into a full-scale quake.
Manufacturers of everything from drywall to the kitchen sink are also vulnerable to stagnant or declining sales as fewer houses change hands.
“Do a mental walk around your house and look at appliances and fixtures,” to see what companies are exposed to the housing market, said Sam Stovall, chief investment strategist for Standard & Poor’s.
…
For many companies, the five-year housing boom was a sales bonanza. Not only did more homebuyers jump into the market, they also indulged an appetite for more living space than ever before. That meant more demand for windows, paneling and central air conditioning.
JB,
Makes one wonder if the the losses/foreclosures in the midwest is attributed to this. The midwest never did experience the run-up in prices as compared to the east and west coast. Yet, their RE market is showing severe strains.
From Marketwatch:
WCI Communities sees quarterly earnings below prior outlook
WCI Communities Inc. after Tuesday’s closing bell said it expects third-quarter per-share earnings to be “significantly below” its prior outlook of 52 cents. Analysts polled by Thomson First Call expect earnings of 55 cents a share. The Bonita Springs, Fla.-based homebuilder said the weaker outlook is due to the write-off of around $13 million of costs related to land options that were terminated during the quarter, which cost the company 18 cents a share. However, the company still expects to report positive net income for the period. WCI sees combined tower and traditional new orders for the period falling 80% from last year.
BC,
IMHO, the foreclosures in the Midwest can be largely attributed to fact that they didn’t have a big run-up in prices, but at the same time, did have access to toxic mortgages.
On the coasts, appreciation bailed borrowers out and allowed the party to continue. A distressed borrower could either sell or refinance his way out of trouble. In the Midwest, your options are more limited.
I think the Midwest shows an example of how even a “soft landing” won’t be good enough to save RE.
going to Ohio tomorrow to visit grannie. I’ll let you know how the midwest has landed.
“Unfunded federal mandates, however, help push tax burdens onto state and local municipalities, which raise significant taxes from property values, Roll said.
Then property taxes “acts as a backdoor tax hike. The tax gets buried because people’s property taxes are often paid monthly with their mortgage,” Roll said.”
This is the crux of the matter – emptying one pocket to fill another. Until there is major control of spending and pork, both on the federal and state level as well as local, nothing will change.
Look at MLS: 2275717
Listed at: $699K
Assessed by Town at: $733.5K
Don’t know if Town will re-assess if the house is sold below assessment value.
“Unfunded federal mandates, however, help push tax burdens onto state and local municipalities, which raise significant taxes from property values, Roll said.”
I’m not for unfunded federal mandates at all but this isn’t the crux of the matter as ALL states would feel this pinch.
The “crux of the matter” in NJ (and NY) is too much spending within the state, county and local goverment.