U.S. Home Values Up 2 Trillion Dollars This Year

[Dean Hoffman]

[gfretwell]

As we found out in 2008 there is a difference between home prices and home value. I would say home prices are up. Whether that is actually going to translate to value will be seen.

[Dean Hoffman]

Real estate taxes are going to jump. Insurance rates also.

[Ed Pawlowski]

Tax RATES should go down if the assessment goes up. Insurance for replacement would go up.

[Ed Pawlowski]

That is a good point. My house is 2 1/2 years old and at the price I could sell it for now, to me, is not a good value. My income did not change so from a buyer POV, not so good.

[micky]

I don't think anyone will pay 2 trillion for my house.

[Ed Pawlowski]

The way things are going, maybe they will next year.

I sold, then bought a new house. Looking at Zillow, the house I sold is value at 30k more in 2 1/2 years. While the extra would be nice, it does not cover the 60k+ the house I bought went up in the same time.

I'm staying with a friend in NJ this week. Her place jumped at least

500K in the past year. She does not rent her place out but if she did, it would get 15K a week.

[MikeJ]

micky [e-mail] wrote in news: [e-mail]:

Nice. Very nice!

[trader_4]

It happens here every time they do a reassessment, which is maybe every ten years or so. What do you think happens? Properties go up on average say 50% and they use those new numbers with the old tax rate? Suddenly the municipality would have

50% more revenue, if the poor slobs could pay their bills. It doesn't work that way. The new tax rate is set so that the total revenue from the new assessment stays the same.

[Ed Pawlowski]

Putnam CT. The mill rate for taxes is set by factoring the value of the properties assess and the town budget. When they did the reassessment each time the tax RATE was reduced to reflect it.

The last time it was done, industrial/commercial properties went up a bit more that residential and my house tax actually went down a few bucks.

If you assume it it going up, the town may oblige you. We had people concerned and watching for that.

Most towns/cities have regulations on how it works and just because value goes up, no windfall.

[invalid unparseable]

I just googled my address and looked at the Zillow estimate. It is unreal and claims it went up $17,000 in one month.

Inflation is running 5% and some moron said it is only 3% if you discount fuel and food.

[Ed Pawlowski]

A week or so ago CBS Sunday Morning did a segment on housing. Crazy. Houses listed for 400k had eight bitters and it sold for 500k. an open house had a line of people waiting to go through and 50 cars down the street.

My neighbor sold his house in one day. Listed and advertised on Day one, sold above listed price by 10k the next day.

[Scott Lurndal]

That is highly locality dependent. Some progressive states have a 1% tax rate. It never changes. The assessment can go up by no more than 2% p.a. and is only reasssed on an ownership change. The rate never changes.

[gfretwell]

Exactly. Rates virtually never go down. What they do here is reduce the effective assessment when there is a bubble so they don't need to raise the rate if there is a decline in retail price. We also have SOH for homesteaded properties that caps increases to 3%

[gfretwell]

The thing that changes the millage most places in Florida is new taxing "districts" (things like Mosquito Control and hyacinth control). They add another service, call it a taxing district and it shows up on your tax bill as a new charge. Your base rate stays the same.

[Tekkie©]

On Thu, 10 Jun 2021 14:35:33 -0700 (PDT), Dean Hoffman posted for all of us to digest...

Home values are like the stock market to me. It only matters when one sells. Selling can be planned or unintentional. I am no financial wizard nor pretend to be one on the inet.

[Tekkie©]

On Thu, 10 Jun 2021 18:24:46 -0700 (PDT), Dean Hoffman posted for all of us to digest...

That's for sure - for both. Inflation is already here...

[trader_4]

They do here, every time there is a revaluation. It's what fair and reasonable places across America do when they revalue properties every ten years or so. Florida may be an exception.

I see, so instead of adjusting the rate, they fiddle with the assessment. Sounds stupid and backwards to me.

[Ed Pawlowski]

Simple math. You have assessment, budget, tax rate. They work together. Total assessed value divided by budget = tax mil rate. The fact that the value of houses increases does not trigger a tax rate change, the town/city budget does that.

Sure, some towns may slip a few things in since people don't know what is going on and expect a tax increase, so lets give it to them.

Be sure to attend some of the town meetings too when budget talks come up. Citizens have to watch.

[gfretwell]

Properties get appraised annually here.

Why? The rate is the rate and the tax is based on the value of the property. Why juggle the rates when they have a recent assessment., Maybe your bureaucratic inertia is too slow up there to do appraisals annually but in volatile markets it is the only way to be fair. We have some areas that sales prices could easily double or more in 10 years. Other places might be damn near static, particularly for a land locked preFIRM house in a mediocre neighborhood. If you juggle the rates, you are screwing the working man in that house that is worth little more than he paid for it while the fat cat in the gated community or on the water saw a double. It would be a disproportionate tax hike on the working guy and a tax break for the fat cat. You really are a Democrat now.