Have you noticed that higher-priced homes sales are cooling off a bit, especially above $1.5 million, if they had been overpriced based on comparable sales as many are still now even in our continued hot seller’s market? The lower-priced properties less than $1.2 million are still doing quite well and are not staying on the market for very long as the demand in that price point is still doing extremely well and are being snatched up quite rapidly.However, the demand for coops and condos has chilled a bit, but are still selling—just taking longer to close due to the co-op approval process.
Schools at the present time are also tantamount in the decision-making for buyers and a major benefit to those who are selling as they set a standard for those who put that variable at the top of their “must have” list. Another very important item that comes into play are our real estate taxes as the effect from the Salt Tax is still in major play in NYS, CT, NJ and California where the taxes are off the wall and causing an exodus greater than what had been occurring prior to the Covid-19 pandemic!
People are waking up to the reality of their costs of living and changing attitudes are such they are exiting those states at a more rapid pace. They should absolutely repeal the Salt Tax and I am wondering is anyone doing anything about this onerous tax on not only our current homeowners, who have resided in their places for a very long time, but all those who have decided to leave NYS, putting one more nail in our coffin.
Moreover, it is having amajor effect on new sales, with our insanely high prices and those new purchasers that want to stay local or who are coming here to Long Island and other highly taxed states. They want to bring up their families and build roots in their communities and stay for the long run. What will happen as interest rates increase and inflation continues to be a thorn in the side of everyone? Are you aware of what the actual real inflation rate is when you add back food and energy (which government doesn’t want you to know about). Call me and I will explain it all to you.
The brain drain has been occurring for so many years (since 1987 as mentioned in one of my previous columns when I was running for the Town of North Hempstead supervisor) and spoke in front of a congregation in Manhasset). It will only continue to get worse and we are at a critical juncture and tipping point in time, where quality workers will no longer want to come to Long Island, due to the fact of higher than normal real estate taxes and rent too. Only those making hundreds of thousands of dollars per year will be able to afford Long Island and or New York City, as we become an elitist society.
But what is happening to our middle class will continue to be downgraded and lost to a non-existent entity! So it is extremely important to make our area more conducive for people to stay and remain on Long Island or come to relocate and live here. But how will this be accomplished and successful? Overall taxes are so egregious that it is forcing people to leave to other states with not only lower taxes but no state income tax and in many ways a better lifestyle. When will our state and federal governments look into their “spend thrift” ways to reduce the overall running of their institutions and go after those that are not taxed enough, and they know who they are?
Yes, Covid has depleted many coffers of money throughout the U.S. but at the same time there are many ways to cut costs and spending and it’s about time that it be figured out and implemented in a non-partisan way (which lately is next to impossible) instead of always coming to us, which is the path of least resistance, to grab more of our hard-earned money in various ways.
I apologize for the rant and getting off the topic and digressing a bit, but it really pees me off to no end! However, as I mentioned in another previous column it will be far more to your advantage to purchase in the current market at the still historically low interest rates, even if you have to go to asking or above asking price to secure your “next place to call home.” A future lower price of let’s say 10 percent or more may still cost you a lot more in interest over a 30-year span of your mortgage at that time. I had previously done an Excel spread sheet proving this fact from 3.5 percent-6 percent mortgage rate.
Unless you are paying upfront for your purchase or prepaying your mortgage way in advance of it being due, waiting surely will be detrimental to your future wealth. Only time will tell if I am accurate or not, but figures don’t lie, and I have it in writing. Staying in the current market and finding that special place will be the best opportunity you can have or the choice is yours and bailing out of NYS to other more economical states.
So homeowners, if you are planning to sell now or in the very near future or beyond, be extremely careful in your pricing as this market will be eventually changing further, maybe not radically, but will change as interest rates increase and so will our national debt. Realize that the market will eventually determine your sale price and right now one has to watch for overpricing. One must go by what is available, under contract, sold and withdrawn and released as a barometer in pricing your home now and later on. You may think, believe and feel that you have platinum but the buyer knows that you really only have gold or silver. However, in reality, feelings are never relevant to market value.
Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 40 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). For a “FREE” 15 minute consultation, a value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: [email protected]