It's a frenzy, second-home tax, and some warning signs...
- AGENT 1
- Dec 9, 2020
- 1 min read
Ever since the housing market has emerged from its pandemic-driven freeze š„¶ in late spring š±, there has been a frenzy šØ of home buying and a sharp rise ā« in prices. The common explanation is that the pandemic has swollen the ranks of those who need more private space for work š and play šļøāāļø and safety š·, typically farther from urban centers š.
State lawmakers āļø are quietly š¤ reviving plans for an annual tax š§¾ on second homes š in New York City š½. The reach for revenue goes beyond the rarefied condo towers š of Manhattanās Billionaireās Row, with different taxing methods šø for every category of homes owned by part-time š residents across the boroughs.
It's hard to imagine š¤ the market turning when, every month, properties are selling for higher āļø and higher āļø prices šµ. It would be rare for a market to plunge ā¬ overnight the way a stock market š could. It's just not the same. Although we have seen sudden changes in real estate, the following indicators ā ļø can usually be seen weeks š in advance:
As economic uncertainty š¤·āāļø from the pandemic continues to upend expectations for 2020, the tight housing market is a leading indicator š of where Americans šŗšø want to spend š their money.
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