Around 18 months ago, changes to tax laws caused panic across the real estate industry, with many expecting the changes to take their toll in states with high prices and high taxes, most notably New Jersey. However, according to recent reports, this has not come to fruition, although some real estate experts are not dismissing the risk altogether.
Figures show that, compared to a year ago, the median house price in New Jersey now stands at close to $320,000, which reflects an increase of around 5 percent compared to a year ago. The number one housing marketing in the United States is still Las Vegas, with many looking forLake Las Vegas homes for sale along with other areas of Vegas. However, New Jersey has experienced greater success than anticipated in 2019, with many waiting with bated breath to see what 2020 holds for the property market in the area.
Results Not Yet Seen
Changes to thefederal tax law were made in 2017, and this resulted in variations in the year on year change on a monthly basis. The monthly variations in New Jersey since the changes in tax laws have ranged between 2.5 percent and 7.4 percent. Property experts in the area have said that the year on year change in New Jersey is in line with national changes and those in the Northeast.
Having said that, experts have also stated that the tax law changes have not been without impact on the property market in the area. Figures show that the number of residential properties for sale in New Jersey stands at around 10 percent lower than they were a year ago. Many believe that, while the short-term impact has not been huge, the full impact of the changes may not have been seen as yet.
An official from New Jersey Realtors said that 2020 was set to be in interesting year in terms of seeing how the changes would impact the real estate market in the area. She said that a better understanding of the impact on the property market would now be gained as people had filed their taxes under the new law. This would then give them more of an idea of what the impact of the tax law changes would have on their plans to purchase a property. She did also state, however, that the summer of 2019 had been much busier than the spring.
After the tax changes took place, a report from Moody’s predicted that the effects of the change would have the most impact in 2019 and thatNew Jersey would be hit the hardest in terms of property values. However, the report did state that this did not necessarily mean that property prices in New Jersey would plummet, just that they may not perform as well as they otherwise would have.
The true impact of the changes still remains to be seen, and there is little doubt that those involved in real estate in the area will be waiting with bated breath to see what 2020 holds.