Today's Local Real Estate News

Zillow.com, which traditionally has provided some of the most slanted statistics on housing price increases, is announcing significant drops in home prices. Zillow highlighted South Florida in their press release:

“Nationwide, values for all homes are down 2.8 percent year-over-year and are relatively flat quarter-over-quarter (0.1%), with a U.S. Zindex(TM) home value indicator of $251,588. But, when broken out by size, differences in value become very evident.”

“Midsized and large homes -- which include the U.S. average 1,500 square-foot residence -- showed the steepest declines among single-family residences, with values down 3.1 percent and 2.8 percent year-over-year, respectively. Small homes declined just one percent in the same period. In this analysis, large single-family homes are defined as those with more than 1,900 square feet, midsized homes are 1,200-1,900 square feet, and a small home is defined as less than 1,200 square feet.”

“Similarly, condo values dropped 5.2 percent year-over-year, with a Zindex home value indicator of $238,721. Condo owners in parts of Florida and California's Central Valley experienced the sharpest drops -- between 10 and 14 percent compared to Q2 2006.”

“‘The U.S. real estate market still appears quite anemic, at best, with many markets still doing poorly, especially those in South Florida and Southern California,’ said Stan Humphries, Zillow's vice president of data and analytics. ‘The one ray of hope this period is that we have not seen another quarter-over-quarter decline as we have experienced for the past two quarters. The significantly poorer performance of condos and larger single-family homes suggests that prices for these housing sectors are still not in accord with current demand.”

As expected, the tax-and-spend propaganda against the proposed super exemption is picking up steam. We can expected more and more of article like this one from the Sun-Sentinel that was title “New property tax system would slam ‘affordable’ cities in Broward.”

“The communities with many of the condos and homes most affordable for middle-income families in Broward County would take the biggest financial hit if a shake-up of state property tax breaks wins voter approval.”

“The proposed ‘super exemption’ on a statewide ballot in January could cost Coconut Creek, Lauderhill, Margate, North Lauderdale, Tamarac and West Park at least a tenth of their tax base, according to an analysis of property tax data by the South Florida Sun-Sentinel. Each city would face drastic cuts in services.”

“The six cities lack large swaths of luxury housing, investment property and commercial development that protect other communities from a major hit. Instead, vast numbers of homeowners in their middle-class neighborhoods and senior communities could cut thousands from their tax bills.”

“‘It would be tough to run the city and offer people the services that we have always offered,’ North Lauderdale Mayor Jack Brady said. ‘Come check our books, because we haven't overspent. This would devastate us.’”

Of course the Sun-Sentinel couldn’t leave Palm Beach County out:

“Palm Beach County's middle-class bedroom communities and the poor towns in the Everglades would take the biggest financial blow if a new "super exemption" wins statewide approval.”

“The plan on the Jan. 29 ballot could cost 10 cities, including Boynton Beach, Royal Palm Beach and Greenacres, at least a tenth of their tax bases, according to an analysis of property tax data by the South Florida Sun-Sentinel.”

“These communities share a stock of moderately priced housing by Palm Beach County standards and lack luxury homes and large swaths of investment and industrial properties that bring in higher tax revenues.”

“‘It's not all mansions on the beach,’ said Jamie Titcomb, executive director of the Palm Beach County League of Cities, citing communities that operate on tight, tiny budgets, such as Pahokee and Belle Glade. ‘Many of our communities are marginal at best in terms of their survivability under some of these scenarios.’”

As more people face foreclosure, we can expect the amount of “suspicious” home fires to go up significantly. The Miami Herald reports on one:

“John D. Lummis and his ex-wife, Cynthia Macbeth, own a house where Lummis lived with his girlfriend, Beth Howe, and her three children. Lummis was in a financial bind: Between the $1,300 a month garnished from his wages in order to pay child support for four of his six children, and supporting Howe and her three children, he had not made a mortgage payment for almost two years.”

“The mortgage holder, Cendant Mortgage Co., had been paying the premiums on the State Farm homeowner's insurance policy. On Feb. 5, 2003, Cendant obtained a mortgage foreclosure decree on the house. The next day, the house burned down.”

“Howe called 911 to report the fire around noon. She then phoned Lummis at work. Lummis' boss offered him a ride home immediately. He turned it down. But he took his buddy up on a second offer of a ride home later in the afternoon.”

“After Lummis got home, he reported the fire to State Farm. The agent who took his call thought he sounded nonchalant. State Farm immediately started an investigation of the claim.”

“‘One of the most important clues to the fire's origin was a red plastic container found at the scene that tested positive for traces of gasoline and kerosene. Lummis, who was a volunteer firefighter for about seven years, would, State Farm concluded, be more familiar with this mixture as an accelerant than would the average Joe,’ according to the court's report.”