Today's Local Real Estate News: "Nothing in this county has gone up 30 percent in value."

While this site is certainly glad that Governor Crist is fighting for property tax reductions, it is also painfully obvious that Crist is oblivious to the national housing downturn – downturn that has nothing to do with our local problems with insurance and taxes (see my previous post on this issue). The Miami Herald reports on Governor Pollyanna – errr, I mean Governor Crist – where he once again used his ridiculous “sonic boom” prediction:

“Gov. Charlie Crist urged real estate agents during a speech Thursday to rally support for a January ballot measure that will cut property taxes. He also repeatedly criticized the property insurance industry as tenacious and greedy.”

“Crist had a very receptive audience for the two issues he has promoted during his campaign last fall and since being elected governor in November, and he predicted agents will see significant results when he, lawmakers and voters work to bring down homeowners' costs.”

“‘Florida's going to have a sonic boom when this happens. You're going to be busier than you've been in your life,’ Crist told 550 agents at the Florida Association of Realtors' annual convention. ‘Get ready, get your rest, make sure your license is up to date.’”

“He depicted the industry as smart and disciplined as well as greedy.”

“‘How much do you need to eat? How many cars do you need to drive? How big a house do you have to have? C'mon, there's fair and there's fair. I'm a pro-business guy, but I'm pro-good business,’ Crist said. ‘I believe in profits but I do not believe in profiteering on the backs of my people.’”

Despite the efforts of Governor Crist, the Sun-Sentinel reports that few in Broward County were helped by recent tax cuts:

“Property owners across Broward County began learning this week how much they will save because of state-mandated tax relief, and some are far from happy.”

“The disappointment over the size of tax cuts is coupled with confusion about how property values used to calculate taxes went up when sales prices have gone down.”

“Property Appraiser Lori Parrish will finish mailing out more than 800,000 tax notices today and is already being deluged with calls and e-mails. She says misunderstanding and questions are rife because of the tumultuous real estate market and complex tax law changes.”

“Coconut Creek resident and landlord Jeff Merlin won't see any savings on a condo he rents out. Because its assessed value jumped 30 percent, he will pay $300 more in taxes.”

“‘Nothing in this county has gone up 30 percent in value,’ Merlin said. ‘What I see happening is the county raised assessments to compensate for rate cuts. They made sure their tax revenue stayed the same.’”

The Palm Beach Post reports a similar reaction in their county:

“When Palm Beach Gardens retiree and landlord Fred Wang received his tax bills this week, he wondered where the big savings had gone.”

“The assessed value of one of his properties, a duplex in suburban West Palm Beach, soared by 35 percent. His tax bill on the home rose 17 percent from last year.”

“‘I was surprised,’ Wang said Thursday. ‘The governor pushed the tax reform, and the legislature worked real hard to lower taxes. But when I get the bill, it looks like there's a disconnect.’”

“One common question: How can my taxable value rise when my market value falls?”

“That's one of the quirks of Save Our Homes, the tax break approved by voters in 1992. The amendment to the state constitution says the taxable value of homesteaded properties can rise by no more than 3 percent a year or the rate of inflation, which was 2.5 percent in 2006.”

In some good news on the national economy, the Labor Department reported fewer jobless claims last week:

“Fewer people signed up for jobless benefits last week, an encouraging sign that most businesses aren't resorting to big layoffs amid a housing slump and the painful credit crunch.”

“The Labor Department reported Thursday that new applications filed for unemployment insurance dipped by 2,000 to 322,000 for the week ending Aug. 18. It marked the first drop in new claims in roughly a month.”

“Turbulence on Wall Street over credit problems in recent weeks has increased uncertainty and has the potential to restrain overall economic growth going forward, the Federal Reserve said last week.”

“‘The downside risks to growth have increased appreciably,’ Fed Chairman Ben Bernanke and his colleagues concluded last Friday. It was a much more sobering assessment than they had offered just 10 days earlier when they met to examine economic conditions and interest rates. Against this backdrop, the central bank sliced the rate it charges banks for loans, a narrowly tailored move aimed at propping up sagging financial markets.”

The Miami Herald reports that a judge has ordered mediation in the ongoing battle between Federal officials and Miami-Dade:

“A federal judge has ordered mediation over control of the Miami-Dade Housing Agency, a small early victory for county leaders trying to fend off a takeover by the U.S. Department of Housing and Urban Development.”

“Over HUD's opposition, U.S. District Judge Donald Graham ordered the nonbinding mediation on Monday. A daylong session is scheduled for Sept. 10.”

“‘Both parties will get to present their viewpoint, their perspective,’ said Assistant County Attorney Cynthia Johnson-Stacks. ‘The mediator will help with their common points, where he thinks he can bring together the parties toward resolution.’”