It Property Appraisal Values, Stupid

Duncan Black makes the same point I did in converstations I had with friends. Homes are appraised over the value.

Watching a 3 bedroom condo fall in listed price from $610K to $449K I'm inspired to make the obvious point that housing prices will come down until they hit the point where "average" housing units are priced such that typical potential homeowners can afford to make the monthly payments with typical mortgage terms.

Florida has two problems: property taxes and decreased number of people buying new homes. A recent Leadership Florida study found one out of five Floridians are considering leaving. United Van Lines moved more people out of Florida than in for the first time in thirty years.

If homeowners are selling their houses under the appraised values than state leaders needs to re-evaluate property appraisal. The State legislature would have to set new guidelines. That would be a major headache for county appraisers. Many homeowners would be furious over lower appraisal values. Changes still need to be made.

Over-inflated property appraising is a scam counties and homeowners enjoyed. Counties enjoyed the increased tax revenue. Homeowners could sell their property for a good price. But then the market's bubble popped.

Appraisal ratings are suppose to reflect actual market value. Current ratings are used to increase the tax on millage. Homeowner can pay taxes for value their property doesn't have or ask for reform. Housing sales will increase with lower property values. The current system is regressive and hurts economic growth.

Florida needs to find a better tax system than an over-reliance on hearding new residents into the state. The economic growth monster creates new revenue, as well as needs for more roads, schools and first responders. The Growth Monster is like a heroin addict always needing another fix. Florida's budget deficit can no longer feed the monster.