Wednesday, November 6

Homeowners Face Tax Hike as Home Values ​​Rise

Javier Zarain

Homeowners in the United States have been surprised by higher property tax charges, a phenomenon related to the unbridled rise of costs.

The escalation of prices in the real estate market has benefited millions of homeowners, whose houses are now worth more compared to the price they had two years ago.

However, this price increase has a side that is not so pleasant for the owners who, in millions of cases , have had to pay more property taxes.

Why do you pay more taxes now

At least every two years, thousands of counties around the country conduct assessments of property tax value.

House prices skyrocketed 37% since February 2020, before co the covid-19 pandemic will begin, and to date it has not stopped moving.

The owners have seen how the value of their home has increased ; however, this may also cause them to end up paying more taxes, in the midst of a high inflation scenario.

These new amounts will be updated once the county make a new evaluation of the value of the property, which is usually carried out every one or two years.

The cost The increase in property taxes is a reflection of what has happened in the US real estate market in the last two years, according to a report published in CBS News
.

According to real estate data firm, Attom Data Solutions, the average tax payments of property reached a record level during 2021.

However, he pointed out, the growth percentage of this tax, calculated at 2% in this period , fell well below home value growth, which was set at pro medium in 16%.

For the data analysis signature, the significant rise in housing prices will more strongly transfer the cost to homeowners when property taxes are updated in their respective counties.

Other phenomena that also show that movements in the real estate market affect a sector of buyers has to do with the fact that now they must spend more money on the initial down payment, when securing a housing.

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