Would someone please think of the $550k a year families. They are not rich.

Posted on December 10, 2021 by grim

From the Star Ledger:

96% of N.J. residents would get their full property tax break restored under this Senate plan

Efforts to restore the full federal deduction for state and local taxes have run into opposition from some Senate Democrats who want to limit the tax break to middle-class taxpayers.

One possible compromise circulating on Capitol Hill would do just that — and it would cut taxes for 96% of New Jerseyans, according to a recent study.

Under the proposal, taxpayers making up to $400,000 would be able to deduct up to $80,000 in state and local income and property taxes. The $80,000 figure is included in the House-passed 10-year, $1.75 trillion social spending bill, with no income limit.

…

In New Jersey, that proposal would give 91% of the benefits to those making $400,000 or less and the remainder to those making between $400,000 and $475,000. Under the House-passed provision, 44% of the benefits would go to those making $400,000 or less, 8% to those making between $400,000 and $475,000, and the remaining 48% to those making more than $475,000.

…

Menendez, for example, has suggested setting the income limit for increasing the deduction for state and local taxes at $550,000 rather than $400,000.

“I’m pretty much where I’m going to be,” he said. “If you’re in New Jersey and you’re making 550, you’re not rich. Those families should be taken care of.”

Posted in Economics, Employment, New Jersey Real Estate, Property Taxes | 224 Comments

Zillow predicts the future

Posted on December 9, 2021 by grim

From Zillow (not that they are ever right on anything):

Zillow’s Hot Housing Takes for 2022

2022 will fall just short of record-breaking

Sellers keep the upper hand

Large rentals will be in high demand

The ‘Sun Belt surge’ will extend to secondary markets

More Gen Zers and millennials will buy a ‘second home’ before a primary residence

No end in sight for the renovation boom

Work will play a key role in moving decisions

New construction gains will only be a drop in the bucket, despite best efforts of builders

Posted in Demographics, Economics, National Real Estate | 178 Comments

Are they really?

Posted on December 7, 2021 by grim

From NJB:

Despite Labor Issues, Companies are Still Eyeing NJ, Panelists Say

According to the U.S. Bureau of Labor Statistics, October marked the tenth consecutive month of nonfarm job gains in New Jersey. The state’s private sector employers added more than 38,000 jobs during the past two months, and overall, New Jersey has now recovered 512,900 jobs, or about 72%, of the number of jobs lost in March and April 2020 due to the impact of the COVID-19 pandemic.

Despite these gains, there does remain a disconnect when it comes to the state’s unemployment rate, which currently sits at 7%, well above the national average of  4.6%, and the number of job openings in the state, of which there are approximately 300,000.

There are a host of reasons as to why people aren’t going back to work, including child care concerns and now-expired unemployment benefits, but the overall feeling among panelists at the New Jersey Business & Industry Association’s (NJBIA) 2022 Public Policy Forum is that over time, more people will end up reentering the workforce as the state continues to recover from the effects of the pandemic.

“There is still a level of optimism,” said Choose NJ President and CEO Jose Lozano, during a panel discussion at NJBIA’s Public Policy Forum, held at the Delta Hotels by Marriott Woodbridge. “We still have a significant number of companies coming to New Jersey, and still hiring and adding more jobs.”

He said that New Jersey’s well-documented benefits such as its desirable location and highly educated workforce remain attractive to companies despite the state’s current unemployment rate, and, more importantly, its high taxes.

“This region is still the choice region for international companies looking to expand into the US,” Lozano said. “Companies are looking to build the workforce of tomorrow, and the workforce of tomorrow really values some of the things that we in New Jersey take for granted, such as being a great place to raise a family and great school systems.”

Posted in Economics, Employment, New Jersey Real Estate | 252 Comments

$931,698 – What the average NJ resident will pay in taxes over their life

Posted on December 5, 2021 by grim

From NJ101.5:

New Jersey residents pay the most taxes over a lifetime

The governor downplays it and the media, the PR arm of the Democrat Party, seem to ignore it. Taxes are and have been the biggest concerns of most informed adults in New Jersey for generations. So, when a recent poll came out that points out the fact that taxes are the biggest problem facing the state, most of us without our heads up our asses, said “duh!“

…

In New Jersey, we have a giant, well-funded bureaucracy. Government is just too big in this state. The problem with reducing it now, is that most families have at least someone who is connected to it. So many people want to keep the gravy train going for their mom, dad, son, or daughter and vote for the party of big government, Democrats.

They have a majority in both the assembly and senate that will probably never be overcome. Now we are in a period that we will even elect Democrat governors who promise to raise taxes and thumb their noses at the constituents who complain about it. The big tax that hurts the most and drives so many people out of the state is property taxes. The biggest chunk of that tax goes to pay for public schools, about 70-75%.

…

In New Jersey we have two sets of people. The people who work to pay taxes to feed the machine, and people who make up the giant machine that can’t be satisfied unless taxes go higher and higher. The tax burden is more than just property taxes. We here in New Jersey will pay more taxes than any other state over a lifetime. Some people benefit greatly from those taxes and most of us just suffer through it because we love this state.

Posted in Economics, New Jersey Real Estate, Property Taxes | 86 Comments

You load 16 tons, what do you get?

Posted on December 3, 2021 by grim

From the Star Ledger:

Hudson River rail tunnel gets green light from the feds to start building it

A major and final bureaucratic hurdle has been cleared by the Gateway Tunnel project after the U.S. Army Corps Of Engineers issued a permit to allow construction of the tunnel and tracks through the Meadowlands and under the Hudson River.

The permit was announced Wednesday morning that allows construction of the $12.3 billion project to build two new tunnels and rehabilitate the exiting 111-year old tunnels to start in summer 2023, once funding is secured.

…

The tunnel increases capacity allowing more trains to be sent to and from Penn Station, opening up access to NJ Transit lines that don’t go to New York. The tunnels are a key part of Amtrak’s high speed rail and Northeast Corridor upgrades. It would end delays due to infrastructure problems with the old tunnels built in 1910.

…

Gov. Kathy Hochul said the tunnel was important for the economic vitality of New York, which produces 20% of the nation’s gross domestic product.

“The Gateway project will help support the economic prosperity of New York and the rest of the country for years to come, which is why we need to get this project right and get it moving,” she said in a statement.

Construction of new tunnels and rehabilitation of the existing tunnels is estimated to be completed in 2035, GDC officials said in November.

Posted in Demographics, Economics, Employment, New Jersey Real Estate, NYC | 259 Comments

Paying taxes in the Sunshine State

Posted on December 2, 2021 by grim

From the Star Ledger:

With no SALT deduction, should I move to Florida?

There’s no question that taxes across the board are high in New Jersey when compared with other states, and that most taxes in Florida are lower.

To begin with, Florida has no state income tax, while New Jersey imposes a gross income tax that ranges from 1.4% to as high as 10.7% on taxable income over $1 million, said Gene McGovern, a certified financial planner with McGovern Financial Advisors in Westfield.

New Jersey also has some of the highest property taxes in the nation, he said.

Florida, however, while less expensive, still ranks 18th out of 50 states in property taxes as a percentage of median income, he said.

McGovern said New Jersey’s sales tax is actually slightly less than in Florida.

“Florida imposes an average combined state and local sales tax rate of about 7% compared with New Jersey’s 6.625%. Note also that Florida taxes clothing purchases while New Jersey doesn’t,” he said.

Then, gasoline taxes in Florida are about 7 cents a gallon less than in New Jersey.

“So, to paraphrase Governor Murphy, if taxes are your only consideration, maybe New Jersey isn’t the state for you,” McGovern said.

But let’s take a moment to look at the other side of the New Jersey tax coin before turning to your question.

To begin with, New Jersey doesn’t tax Social Security benefits at all. They’re tax-free here, he said.

Moreover, New Jersey recently expanded its tax exclusion for pension and retirement income, effective for the 2021 tax year. Under the new rules, if you’re 62 or older and your total income is $150,000 or less, you can exclude all or part of your pension, annuity, and IRA withdrawals from being taxed, based on your income.

Many New Jersey retirees, then, are eligible to pay little or no state income tax, he said.

In terms of property tax relief, New Jerseyans who are 65 or older and have total income that doesn’t exceed $92,969, as of 2020, are eligible for the Senior Freeze, which reimburses eligible senior citizens and disabled persons for increases in the property tax on their principal residence, he said. The income limit is adjusted upward each year.

Finally, New Jersey abolished its estate tax as of 2018 and has no gift taxes.

Posted in Demographics, Economics, New Jersey Real Estate, Property Taxes | 166 Comments

Even when they are down they are up

Posted on December 1, 2021 by grim

From CNBC:

Home price gains slow down for the first time since May 2020

Home prices are still considerably higher than they were a year ago, when the pandemic caused a massive run on housing, but the gains are finally starting to ease up.

Home prices rose 19.5% in September year over year, down from a 19.8% annual gain in August, according to the S&P CoreLogic Case-Shiller National Home Price Index. That is the first decrease in the annual gain since May 2020.

The 10-city composite rose 17.8% from a year ago, down from an 18.6% gain in August. The 20-city composite gained 19.1% year over year, down from 19.6% in the previous month.

Cities with the highest price increases were Phoenix, Tampa, Florida, and Miami. Phoenix prices were up 33.1% year over year, Tampa up 27.7% and Miami up 25.2%. Six of the 20 cities reported higher price increases in the year ended in September 2021 versus the year ended in August 2021.

Chicago, Minneapolis and Washington, D.C., saw the smallest annual price gains, but the increases were all still more than 10%.

Posted in National Real Estate | 150 Comments

Hiring Stalemate in NJ

Posted on November 30, 2021 by grim

From NJBIZ:

NJBIA survey: 3 in 4 NJ employers faced hiring shortages this year

Despite waning fears about the COVID-19 pandemic, three out of every four employers said they’ve struggled to find workers this past year, and many said they’re pessimistic about the year ahead, according to the New Jersey Business and Industry Association’s 63rd annual Business Outlook Survey.

The organization also found that 28% of respondents said they plan to sell their business or cease operations due to the pandemic restrictions and cuts to both revenue and staffing. Some were more optimistic: 37% said they did not plan to make any changes and another 31% has adopted a wait-and-see attitude.

“[T]here is no question that the continued challenges are wearing down some business owners,” despite “incredible resolve” many have shown since the pandemic started, NJBIA President and CEO Michele Siekerka said in a Nov. 29 statement.

The survey found that 73% of the 601 business owners interviewed faced problems finding new workers. Many prospective workers – 57% – simply did not show up for their interviews, while 49% opted to stay unemployed and 46% canceled their interviews.

Of those three out of four businesses, 57% reported higher burn-out among current staff, 51% noted a loss in revenue and 50% said they reluctantly had to raise wages to lure in workers.

Seventy-two percent of New Jersey businesses raised wages this year and 73% expected to do so in 2022. Just 24% of employers did not offer a raise this year and 25% did not expect to do so next year.

Posted in Demographics, Economics, Employment, New Jersey Real Estate | 127 Comments

NJ is the state for them!

Posted on November 28, 2021 by grim

From Patch:

Every NJ Town’s Average Property Tax Bill In New 2021 List

Tavistock Borough, Camden $30,328

Millburn Township, Essex $24,370

Mountain Lakes Borough, Morris $21,625

Tenafly Borough, Bergen $21,552

Demarest Borough, Bergen $21,377

Glen Ridge Borough, Essex $21,214

Rumson Borough, Monmouth $21,153

Alpine Borough, Bergen $21,042

Essex Fells Borough, Essex $20,413

Princeton, Mercer $20,352

Montclair Township, Essex $19,963

Mendham Township, Morris $19,794

Mantoloking Borough, Ocean $19,304

South Orange Village Township, Essex $19,147

Deal Borough, Monmouth $19,117

Upper Saddle River Borough, Bergen $18,886

Ridgewood Village, Bergen $18,506

Summit City, Union $18,314

Haworth Borough, Bergen $18,270

Saddle River Borough, Bergen $18,210

Posted in Economics, New Jersey Real Estate, Property Taxes | 101 Comments

Thankful for profit$

Posted on November 25, 2021 by grim

From Forbes:

Home Prices Hit Record High, Giving Sellers Much To Be Thankful For

Home prices hit an all-time high of $359,975 in the four-week period ending November 21, according to a new report from Redfin, a technology-powered real estate brokerage. This was up 14% year over year, the largest increase since early September.

Prices have risen in the past month nearly four times faster than they did at the same time last year. The unseasonable surge in home prices appears to be drawing in more sellers, as the number of homes listed for sale was down less than 3% from 2020 and up 11% from 2019.

“Rising rents and rising prices on everything from gas to groceries may be motivating more people to buy homes now,” said Redfin chief economist Daryl Fairweather. “Buying a home is a type of hedge against inflation, especially with mortgage rates still near historic lows. If high inflation persists, a large home mortgage could seem a lot less expensive in just a few years.”

Posted in Economics, National Real Estate | 83 Comments

October home sales hold strong

Posted on November 23, 2021 by grim

From MarketWatch:

Existing-home sales rise slightly as demand remains strong for housing

Existing-home sales moved higher in October despite expectations they would do the opposite, underscoring the strong demand for housing across the country.

Existing-home sales increased 0.8% between September and October, hitting a seasonally-adjusted, annual rate of 6.34 million, the National Association of Realtors said Monday. Compared to a year ago, sales were down 5.8%.

“Home sales remain resilient, despite low inventory and increasing affordability challenges,” Lawrence Yun, chief economist at the National Association of Realtors, said in the report. “Inflationary pressures, such as fast-rising rents and increasing consumer prices, may have some prospective buyers seeking the protection of a fixed, consistent mortgage payment.”

Economists polled by MarketWatch had projected existing-home sales to come in at 6.2 million.

…

On a regional basis, existing home sales only rose in the South and the Midwest. Meanwhile, the number of homes sold declined in the Northeast on a monthly basis, and remained flat in the West.

The median price for an existing home sold in October was $353,900, up more than 13% from a year ago. Unsold inventory was at a 2.4-month supply, equal to the previous month. A 6-month supply of homes is considered to be a sign of a balanced market.

All-cash sales represented nearly a quarter of all transactions in October, up on both a monthly and annual basis.

Posted in Economics, National Real Estate | 215 Comments

NJ unemployment a miserable 7.0%

Posted on November 22, 2021 by grim

From ROI-NJ:

N.J. employment continues on comeback trail, DOL says

New Jersey grew its employment for the 10th consecutive month in October, according to the Department of Labor & Workforce Development, with the unemployment rate ticking lower as well.

Preliminary estimates by the U.S. Bureau of Labor Statistics show total nonfarm employment in the Garden State grew by 20,000 jobs, to a seasonally adjusted total of 4.025 million jobs. The unemployment rate shrank by 0.1 of a percentage point, to an even 7 percent for the month.

The job gains were consolidated in the private sector, which added 22,000 jobs, while the public sector shrank by 2,000 positions.

Adding to the good news, estimates for September were revised higher, to a month-over-month increase of 26,300 jobs, up from the estimated 21,500 jobs added.

Overall, the state has now recovered approximately 72% of the jobs lost in March and April 2020 to the COVID-19 pandemic.

Eight of the nine private industry sectors added jobs for the month, the DOL noted, led by professional and business services, which added 8,900 jobs. Only information lost positions, with a decline of 300.

Posted in Economics, Employment, New Jersey Real Estate | 94 Comments

Halfway there

Posted on November 20, 2021 by grim

From MSN:

House Bill Raises SALT Tax Cap; Senate Still To Vote

Among the items passed by the House of Representatives Friday morning in the Build Back Better Act was an increase in the state and local tax (SALT) cap.

The $2 trillion bill, which passed 220-213, increased the cap from $10,000 to $80,000. That would increase the amount that taxpayers can deduct from their tax returns.

The legislation now has to go to the Senate for approval.

The cap was set at $10,000 in 2017 federal Tax Cuts and Jobs Act passed during the Trump administration. Previously, taxpayers could fully deduct state and local taxes.

It was estimated that the reduced cap cost New York homeowners $30 billion, or $2,600 per home.

Posted in National Real Estate, Politics, Property Taxes | 66 Comments

“I really look forward to Republicans attacking me on restoring the SALT deduction for homeowners in my district”

Posted on November 18, 2021 by grim

From the Star Ledger:

Biden bill to bring back property tax deduction for most N.J. homeowners

Following President Joe Biden’s signature Monday on a $1 trillion bipartisan infrastructure bill, the House later this week is expected to turn its attention to a $1.75 trillion proposal that would restore most of the federal deduction for state and local taxes.

While still subject to further changes, the legislation scheduled for a vote by the end of the week would increase the amount allowed to be deducted up to $80,000 through 2030, with the $10,000 cap returning in 2031.

…

The second bill would also for one year also extend the expanded child tax credit for lower- and middle-class families, which was part of Biden’s $1.9 trillion coronavirus stimulus lawthat passed over unanimous Republican opposition.

According to a study released Monday by the Center on Budget and Policy Priorities, a progressive research group, the expanded credit would benefit 1.6 million children in New Jersey and lift 93,000 above the poverty line.

Another 388,400 working New Jersey adults without children would benefit from the bill’s expanded earned income tax credit, the center said.

…

In addition, two-thirds of those taking the deduction in New Jersey, the state with the nation’s highest property taxes, had income between $75,000 and $200,000, according to Internal Revenue Service statistics.

“I really look forward to Republicans attacking me on restoring the SALT deduction for homeowners in my district,” Malinowski said.

Posted in Economics, Employment, New Jersey Real Estate, Property Taxes | 264 Comments

LI hitting a wall?

Posted on November 17, 2021 by grim

From Long Island Business News:

Long Island home prices head lower again

The prices of Long Island homes dropped for the second straight month in October. 

The median price of closed home sales in Nassau County last month was $650,000, down from the $661,500 median price from September and the lowest since June, according to numbers from OneKey MLS. 

In Suffolk County, the median price of closed home sales last month was $520,000, slightly lower than the $525,000 median price recorded in September and also the lowest since June. 

However, the median prices in both counties are still significantly higher than a year ago. The median price of closed home sales in Nassau last month was 10.5 percent higher than the $588,000 median price from October 2020. 

The $520,000 median price in Suffolk last month was up 10.6 percent from the $470,000 median price recorded a year ago. 

Meanwhile, home sales remained brisk in October. 

There were 2,976 homes contracted for sale in Nassau and Suffolk counties in October, that’s up slightly from the 2,931 Long Island homes contracted for sale in September, but down 22.4 percent from the 3,831 homes contracted for sale in Oct. 2020.  

Pending home sales in Nassau climbed 10.6 percent from the previous month, rising from 1,239 in September to 1,373 last month. However, pending home sales in Suffolk saw a 5.3 percent month-to-month decline, falling from 1,692 in September to 1,603 last month. 

Posted in National Real Estate, NYC, Price Reduced | 163 Comments