Sale prices on existing homes in the area that includes Monmouth County plunged 11.3 percent in the first quarter, today’s Absury Park Press reports.
The National Association of Realtors pegged the median home price in the Central Jersey region at $320,900 in the first quarter, down from $361,800 a year earlier, the Press reports.
Prices in the region peaked at a median of $376,400 in 2006, the NAR says.
From the Press:
“The numbers show that the housing market is still undergoing a fundamental reset,” said economist James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. “The adjustment process has certainly not run its course.”
The data is based on home sales in Monmouth, Ocean, Middlesex and Somerset counties.
…and yet our property tax assessments continue to rise….
This is good news. What normal working-class family–or individual–can afford a $300,000+ home…PLUS the outrageous tax payments?
yea good news laura for all the people losing $$$…please one is awhile STFU you dope
You can say STFU, JD, but guaranteed you clicked on the link and are reading this comment right now. Tee hee. Try to resist responding again…just try.
I'm a renter, so it's not my problem. I will probably never buy real estate in NJ. And the real estate transfer "pay-as-you-exit" tax is a joke too. I won't be paying that either! Oh happy day!
resist, I can't wait..please buy real estate (probably a trailer) someplace far away, go there and don't return.
Laura in idiotville,
why is it a good thing for people's home values to go down further in the first quarter of 2009? This is after the tumbling of values of 2008… people are hurting… some people took out equity which they probably shouldn't have done in some cases but now they are really hurting… other people invested in properties in towns they believe in like Red Bank and have taxes that reflect these home values yet when the values go down they get no relief. I'm having my taxes reviewed but fat chance I get any reduction, my current assessment is $200,000 more than the current value??????
We will have to wait it out… but by all means if you desire to live in another place that offers what we offer and has low taxes please let me know I'd be interested to do a comparison.
Laura,
Are you an idiot or do you just play one on RBGreen? Your statements on the plummeting housing market may get you "dumbest post of the year" and that is a feat your small mind should be very proud of.
Do you realize the full implications of this implosion? I will guess you don't so let me point of just a few facts:
1. lower housing prices, lower tax base. This results in either cutbacks in service or higher fee's…I am sure you'll be on board for either
2. collapse in housing $$$ hurts people. Do you realize people buy houses as investments? People use that $$$ to retire, put kids to college etc but I am sure you didn't consider that.
3. I wont even mention the folks who took out equity or bought houses that are now worth less then they paid. They have enough problems dealing with banks so we'll leave then out for now.
Hopefully this will help you understand so next time think before you start typing.
Have a nice day
What the heck does STFU stand for? I guess you'll have to give me a hint, it must not be able to be posted here?
S=Shut
T=The
U=Up
S = State
T = Taxes
F = for
U = Us
Pooper, this is an incredibly complex issue. To your points:
1. lower housing prices, lower tax base. This results in either cutbacks in service or higher fee's…I am sure you'll be on board for either
Do not count on it, the assessments merely apportion the burden. If values fall then the tax rate goes up, the town budget for the year is what it is. If lots of folks appeal and win then you have to do the same or they shift the cost to you. Services only get cut when the tax payers are tapped out.
2. collapse in housing $$$ hurts people. Do you realize people buy houses as investments? People use that $$$ to retire, put kids to college etc but I am sure you didn't consider that.
No one should ever buy a home as an investment that is what caused this problem nationwide. If someone put the traditional 20% down they would be fine. To use the house as an ATM with a HLOC is shortsighted. The great de-leveraging is only beginning.
3. I wont even mention the folks who took out equity or bought houses that are now worth less then they paid. They have enough problems dealing with banks so we'll leave then out for now.
The folks homes are not the issue that they are upside-down, they already spent the money, took out the equity, why do they think they have any left? They spent what they did not have. They are now renters.
wha-wa-waaaaaaaa!
LJW appreciate your input but here are a few additional data points for you:
1. From a Harvard Study in 2007:
"Housing is a key driver of the economy and continues to be a solid long-term investment for most American households. Housing generally provides steady returns unaffected by volatile movements in the stock market". That was until the government made it possible for people to buy above their means and other to speculate with cheap easy credit. People buying/owning home with the hopes of generating some equity is not why we are in this mess.
2. How about the folks who recently bought or live in areas like Phoenix or Las Vegas that have seen their housing values collapse by 1/2 and now need to come up with $$$ for the bank to keep their houses. I wouldnt consider them greedy or to have been spending above thier means…they're getting screwed.
ps. poor little rich people…reality is this fall in housing values effects the middle class and lower incomes more then the rich but thanks for the kneejerk post.
Houses are for HOMES, not retirement income or college tuition. Anyone who bought an outrageously priced home they could not afford was WRONG to do it, prices are falling because they have to get more in line with INCOME.
Pooper Scooper
"I wouldnt consider them greedy or to have been spending above thier means…they're getting screwed."
Be clear Pooper, its not the banks, they do not hold these mortgages, its pension funds, retirement plans. Bet if you have a pension or 401K you are about to take a hit.
And, if you type in Word first and spell check your posts don't look so silly with all the spelling errors.
Right you are Joanne. House prices have been way out of line with the fundamentals for years. The price run up was a positive feedback loop of NAR propaganda, lending programs for the euphemistically described "underserved" market which destroyed traditional standards, and people like family members, co-workers, and cocktail party acquaintances who were convinced that "real estate only goes up" and "better buy now or be priced out forever."
Fortunately, some used little known analysis tools called "math" and "common sense" and realized we had another bubble.
You can't keep raising taxes on a depreciating asset ! it's impossibly ,and it can't be done !Property taxes must be and will be cut! Otherwise you will see a real collapse in real estate prices due to the tax burden and our politicians know this .tell me how you can have someone pay $15,000. tax on a property valued at 250,000.It's impossibly plain and simple .if someone makes 300K in 2006 but only 100K in 07 are they still expected to pay taxes on 300k in 07?…of course not there tax rate is lowered just as it will be for property tax
Who's paying $15,000 in taxes on a $250,000 home?
Near as I can tell, a house would have to be assessed at around $900,000 to have a $15,000 tax bill. Are you saying there is a house in town assessed at $900,000 that is only worth $250,000?
The homeowners should definitely appeal that assessment.
Hey Lord I talk about myself in the third party John Warfen, dont worry about spelling from people who at least make sense.
Its you who gets the Idiot title for this page every time you post something.
Get some friends or therapy.
Spell check this you sad idiot.
I’d actually feel bad for the homeowners if they weren’t trying to make me a bagholder.
Accept your market value and be thankful
It seems there is some misconception about the way the property tax system works in NJ here.
The budgets enacted by council and public schools are absolute numbers. Council just enacted plans to spend 19.4M, of which 10.9M will be raised by property taxes. The town needs 10.9M, that is an absolute number, the burden to be shared by property tax payers.
It's the relative valuation, not the absolute assessment value, that determines your share of the burden. If everyone's assessment dropped equally by X%, the tax rate will simply adjust upward to satisfy the budget, and everyone's tax bill will remain constant. The only way taxes drop is if budgets are trimmed. This is why a house worth 400k paying 8k/yr in taxes could drop in valuation to 300k and still pay 8k/yr in taxes.
The average taxpayer assessed at $407k with a tax rate of .478 per $100 assessed, is paying (assessment * .478 / 100) = $1945.46 toward local municipal taxes. Then add the school taxes, etc. to arrive at your final bill.
If someone appeals and wins, that delta is picked up by everyone else in a subsequent tax year (when the appealed assessment valuation takes effect).