Posted by Joe Manausa on Monday, August 25th, 2008 at 6:09am.
"In this world nothing can be said to be certain, except death and taxes."
Benjamin Franklin - In a letter to Jean-Baptiste Leroy, 1789
I received an email from a client of mine who had purchased a home in Tallahassee back in 2004. Like many citizens of Florida, he is disturbed about his rising property taxes. His message was
Joe, do you have any numbers on property appraisals in our area. Our assessed value went up last year according to our Trim statement. Having listened very closely to what you have pontificated, I don't believe that's possible and in fact should have gone down from the previous year. Am I wrong? In the trim brochure it says that as long as the assessed value does not exceed the market value they have to raise the assessed value by three percent which is what it went up. What a bunch of c%*. I dearly detest property taxes.
In order to help him
answer this, I performed a detailed market analysis of the Subdivision in which he lives (Golden Eagle Plantation) for the purpose of identifying market movement. Most people who follow the Tallahassee real estate market are well aware that prices are dropping, however each price range and each area has its own performance level. The one factor that is fairly consistent across the board is that inventories are very high, prices are dropping, and we still have not seen the bottom of this Buyers' Market. My recommendation to all home owners is to hold their homes at this time and do not place them onto the market unless a sale is the only option.
I did a study of all resale home sales in Golden Eagle and discovered that unit sales (average number of homes sold each month) is back to a normalized range of just greater than 3 per month. The average price per foot has dropped in Golden Eagle by 12% from exactly 1 year ago (which happened to be the top of the market).