Your real estate tax bill likely shows increases in just about every category. Most real estate tax bills (2009 tax Yr) have increased somewhere in the vicinity of 10%. So tax bills that were $8,000 are now $8,800. Of course, we realize two-thirds of the total goes to local school districts. And generally that is a good cause. But what happens when taxes get so high that buyers shy away from buying. I see that happening already.
Families that want their children going to the best schools and can't afford housing in those areas are renting. Rather than try to buy a home and have $15,000 or more in annual real estate taxes (in addition to a mortgage payment)they are renting for around $20,000 a year.
Now, here is another real body blow to homeowners. The 2010 tax assessments are being mailed to homeowners. In a number of suburban areas, 2010 is a (tri-annual) reassessment year. And assessment increases are being seen in the 25%-50% range! Now, who has seen property values increase in the last 3 years to justify an increase in the assessment? This is ridiculous and way out of control! Could you imagine your real estates going from $8,800 for the 2009 tax year (in example above) to $13,200 in the 2010 tax year? Think about that one.....
Imagine what tax bills are going to be when property values show an increase in value?
Make sure you watch your mail box (or go online) for the new 2010 assessment, especially if your township is being reassessed for the 2010 tax year (payable in 2011).
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Where is this leading?
Foreclosure filings increased from last year in 133 of 206 metropolitan statistical areas tracked in the third quarter, or 65%, according to RealtyTrac. The Seattle area had the highest increase. There, foreclosure filings, which include notices of default, pending cases, notices of foreclosure sale and repossessions, increased 71% from the third quarter of 2009. Chicago was second with a 35% increase followed by Houston, Texas number at 26%. California, Florida, Nevada and Arizona accounted for 19 of the top-20 foreclosure rates in the country. The only exception was Boise City, Idaho, which was 14th. Las Vegas posted the highest rate in the third quarter, where one in every 25 housing units received a filing, more than five times the national average. The 32,288 filings is down 20% from last year.
Cape Coral-Fort Meyers, Fla. was second with a one in 35 foreclosure rate. Filings there reached 10,352, down 22%. One in 36 houses in Modesto, Calif. received a filing in the third quarter for the third highest rate, but it was an 18% drop from a year ago. Miami, Fla. posted the highest total number of foreclosures in the third quarter, at more than 58,600 filings. It's an increase of 9% from last year and up 25% from the previous quarter. “The underlying problems that are causing homeowners to miss their mortgage payments — high unemployment, underemployment, toxic loans and negative equity — are continuing to plague most local housing markets,” said James Saccacio, CEO of RealtyTrac. “And these historically high foreclosure rates will continue until those problems are resolved.”
According to CNBC reporting today, one out of 139 housing units received a foreclosure notice in the third quarter reporting.
Without job growth, the housing market will not and cannot improve. GDP growth of 3% is necessary to turn this around. The Fed is attempting to inflate the problem away, but it hasn't worked. My question is; what happens when you keep force feeding the economy and nothing happens? I think most folkes are fearful of the result. And that is why few want to commit themselves in times of great uncertainty. Let's face it, we're in uncharted waters... October 28,2010
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3rd Quarter data alarming-- Foreclosure filings increased from last year in 133 of 206 metropolitan statistical areas tracked in the third quarter, or 65%, according to RealtyTrac. The Seattle area had the highest increase. There, foreclosure filings, which include notices of default, pending cases, notices of foreclosure sale and repossessions, increased 71% from the third quarter of 2009. Chicago was second with a 35% increase followed by Houston, Texas number at 26%. California, Florida, Nevada and Arizona accounted for 19 of the top-20 foreclosure rates in the country. The only exception was Boise City, Idaho, which was 14th. Las Vegas posted the highest rate in the third quarter, where one in every 25 housing units received a filing, more than five times the national average. The 32,288 filings is down 20% from last year. According to CNBC reporting today, one out of 139 housing units received a foreclosure notice in the third quarter reporting. Without job growth, the housing market will not and cannot improve. GDP growth of 3% is necessary to turn this around. The Fed is attempting to inflate the problem away, but it hasn't worked. My question is; what happens when you keep force feeding the economy and nothing happens? I think most folkes are fearful of the result. And that is why few want to commit themselves in times of great uncertainty. Let's face it, we're in uncharted waters... October 28,2010
Cape Coral-Fort Meyers, Fla. was second with a one in 35 foreclosure rate. Filings there reached 10,352, down 22%. One in 36 houses in Modesto, Calif. received a filing in the third quarter for the third highest rate, but it was an 18% drop from a year ago. Miami, Fla. posted the highest total number of foreclosures in the third quarter, at more than 58,600 filings. It's an increase of 9% from last year and up 25% from the previous quarter. “The underlying problems that are causing homeowners to miss their mortgage payments — high unemployment, underemployment, toxic loans and negative equity — are continuing to plague most local housing markets,” said James Saccacio, CEO of RealtyTrac. “And these historically high foreclosure rates will continue until those problems are resolved.”
More than 30 yrs experience with first home buyers,corporate relo and mass moves, investors, exchanges, buy-outs, REO, short sales,seniors, estate sale,trades, and owner financed transactions.
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