Salaryman
Recycles dryer sheets
That's particularly important on LI. Since buyers do, and will continue to, buy the payment rather than the house, the large property tax bills on Li will provide additional downside pressure on house prices. Patterson is cutting school aid (2/3 of the total LI property tax bill) and even though Great Neck recieves little state reimbusement due to it high income, I can't see tax rates remaining the same. Downstate NY - especially LI - is not known for reducing payments for those at the public trough. In an atmosphere of decreasing revenues, they will try to squeeze those who can still pay.
I saw something similar 15 years ago. Those who could wait out the bloodbath could pick and choose at bargain basement prices. FWIW, we can look to SC for advance guidance. In some zip codes, prices are down 81% from the peak.
During my 32 years in the NY Metro area, I've not seen too many times when the taxes on income/sales/property went down. Also the decreasing tax revenues will ultimately spell reduced gov't spending and tax hikes.
I totally agree with you that a bloodbath could be in the making for the real estate market in the area. But if I'm wrong, I can't see the prices moving higher in the intermediate term so it won't hurt us to wait and see.
Salaryman