Property taxes are soaring across the country, forcing some homeowners to sell, potentially leading to a surge in home rentals. Meanwhile, homeowners insurance rates are also rising, especially in states like Texas and Florida. These escalating costs have resulted in an alarming increase in bankruptcies, as homeowners struggle to cover their expenses. This growing financial burden highlights the challenges families are facing in maintaining homeownership, especially in areas with high property taxes and insurance rates.
Mortgage rates have slightly increased to 7.34%, but their future direction depends on the labor market. Rising homeownership costs also include increasing insurance and taxes, especially in areas prone to natural disasters. While the housing inventory is improving, concerns have been raised about a change in commission arrangements for real estate agents, which may affect home sales.
Newly built homes come with hidden costs that can pop up after the first year of ownership. Property taxes are often estimated based on old data or projected values. When the county reassesses the home's value, taxes can increase significantly, leading to a jump in mortgage payments. To avoid surprises, homebuyers should research the local tax assessment cycle and consult with a loan officer to estimate the potential property tax increase.
