Higher Real Estate and Development Taxes: An Affordability Issue?

Montgomery County Council members have put forth a plan to raise real estate taxes and development taxes in expectation for the future growth and the financial demands of the County.

This proposal will essentially increase the sales price of a single family home "from $1,000 to tens of thousands of dollars" according to Margie Hyslop and Janel Davis, staff writers for the Gazette. What does this translate for sellers and buyers? If this proposal becomes law it will definitely slow down an already sluggish real estate market in Montgomery County.

The median sales price for a home in Montgomery County is around $606,000 and interest rates have gone up considerably in the last couple of months for loans greater than $417,000, also called jumbo loans. This is causing sellers to stay put in their current home and not move-up to a more desirable neighborhood where homes exceed the median sales price.