HOUSINGNEWS REPORT
FEATURED ARTICLE
States with Highest Property Taxes Avg Annual Residential Property Taxes
Property Tax Rate
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
($5,478) and the District of Columbia ($5,124), according to ATTOM Data Solutions tax assessor data. New Jersey also ranks top among the states in terms of property tax rate — average property taxes as a percent of average property values. The property tax rate in New Jersey in 2016 was 2.31 percent, more than twice the national average of 0.94 percent. High property taxes in New Jersey are not only making it more difficult to liquidate distressed properties, they are hobbling the state’s home price recovery, according to Rob Lyszczarz, president of RE/MAX Properties Unlimited, which has offices in Union, Morris and Bergen counties. “With the higher property tax piece, it really creates a lid on where the property values can go,” said Lyszczarz, who said
he recently analyzed year-end home sales numbers and was somewhat surprised to find that four of the five multiple listing services (MLSs) that cover markets where his brokerage does business posted year-over-year declines in home prices in 2016. “I would have guessed that we would have seen 2 to 3 percent increases as opposed to decreases. … If you don’t step back and analyze the data, your instinct can be incorrect.” Strong Sales, Sluggish Appreciation Statewide in New Jersey, single family homes and condos sold for a median price of $270,000 in 2016, exactly the same median price as in 2015, according to ATTOM sales deed data. Median home prices statewide have increased 5.1 percent over the past five years, but are still 16.9 percent below the pre-recession
peak of $325,000 in 2007. Meanwhile, median home prices nationwide in 2016 increased 6.8 percent from a year ago, are up 45.0 percent from five years ago and are just 0.4 percent below the pre- recession peak in 2006. ATTOM data shows 11 of 15 (73 percent) New Jersey counties analyzed in its 2016 year-end home sales report posted year- over-year declines in median home prices for the year, including Essex (down 12.7 percent); Atlantic (down 7.4 percent); Camden (down 5.0 percent); Morris (down 4.6 percent); and Middlesex (down 3.0 percent). While Lyszczarz chalks some of the price decline up to a higher share of lower- value distressed sales, he said some
ATTOM Data Solutions • P5
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