Re: New Tax Rate is Insane!
Posted by user1111 on 2018/5/5 12:39:56
With Jersey City’s long-delayed revaluation finally complete and homeowners closer to paying their new rates, many questions remain as to what the effect on the real estate market will be. In their first 2018 quarterly report, Pure Properties takes a closer look.
Appraisal Systems, the company hired to conduct the revaluation, has released data that indicates the estimated tax increase in Downtown neighborhoods will be around 67% for 1-4 family homes and 24% for condominiums. The numbers are so daunting that Mayor Fulop has floated the idea of a “second revaluation” in 2019 due to changes that might take place in the market following the new rates. At least one fear about the health of Downtown’s marketplace appears to have materialized; Downtown Jersey City had a notable surge in 1-4 family homes coming to market during 2018’s first quarter, with the number listed Downtown increasing 238% from 13 in quarter one of 2017 to 44 in 2018’s first quarter.
Downtown also had 17 total sales of 1-4 family homes, a 31% increase compared to the first quarter of 2017. However, Pure Properties’ latest market report shows that while more homes are for sale, prices haven’t taken a hit. The median sales price for 1-4 family homes increased 2% from 2017’s first quarter to $1.425 million, while condo sale prices dipped 2% year-to-year to $721,000. Rents Downtown have thus far been unaffected by the tax upheaval, staying flat over the year to average $2,600/month.
Conversely, Greenville saw a spike in property values during the quarter. The neighborhood is expected to benefit from the revaluation in the form of lower tax bills, and the average sale price of 1-4 family homes in Jersey City’s most southern neighborhood jumped 17% in the quarter to $345,000. However, condo sales in the neighborhood dropped 25% over the year to an average of $307,500.
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