Know Jersey Finances: How much are property taxes affecting the real estate market?

I can’t tell you how many times I’ve heard someone mention that they are thinking about leaving New Jersey because of their high property taxes. At the same time, I’ve also known people who want to buy property, but believe they can’t afford the property tax
payments. So how are high property taxes impacting New Jersey’s real estate market?

“Property taxes always affect the market because they are a critical part of the budgeting process. Often times I’ll have a client who sees a home, loves it, but when they crunch the numbers to include taxes, it becomes too far above their budget to work,” explained llene Horowitz, New Jersey Realtors president. “It’s not always a deal breaker, though. Most clients in New Jersey are well-educated on the idea that property taxes are high and a considerable portion of their home budget should be allocated for them.”

Keep in mind many would-be buyers and sellers have had to budget for higher mortgage rates on top of the property taxes. While mortgage rates remain near historic lows, they’ve crept up in recent months, and nationally we’ve recently seen home sales fall to a three-year low.

As we continue our focus on property taxes in February on NJTV, we’re going to devote our next Know Jersey Finances episode to property taxes and the real estate market. We’ll be joined by experts who will help navigate any questions you have about home ownership affordability and the current climate for buying and selling.

Do you have any questions? Submit them below and tune in Wednesday, Feb. 20 at noon to see them answered!

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