Brittex Blog

In looking at economic conditions and market data, one of the sources we use is the Standard and Poors Case Shiller “Home Price Values” for Miami-Dade.

This month I have also selected The City of Coral Gables to analyze for short sales, the absorption of condos, and single family homes. I will continue to track this in the coming months to draw conclusions on the direction of the real estate market. For Coral Gables, I am using two sources, which are:

• South Florida Regional MLS
• EWM Site on Facts and Trends

The Case Shiller Index (scroll down to "Research") shows housing markets in South Florida have declined approximately 2.37% per month for the twelve monts prior to August 2008. Previously, the decline was approximately 1.6% per month (for most of 2007).

The MLS shows the following number of "active" for "short sale" listings in *Coral Gables:

• Single Family Homes - 49
• Condominiums - 32

Absorption is analyzed by using the EWM Facts and Trends site. I average the past two reporting periods, rather than take the last reporting period (the index lags by a few months). In August and September 2008, the average was 32 sales of single-family homes with 591 listings. The supply is 1.54 years.  This is total absorption time rather than the six months to one year, which was a normal marketing time prior to the real estate boom. 

For condominiums there are an average of approximately 13 sales per month, with a supply of 409 units over the same reporting period. The supply is 2.62 years. The number of condominium listings fell from 479 in June, to 401 in September, or about 16%. This is a good sign and as construction has slowed or stopped, the overall supply will continue to drop.

*Email Britt J. Rosen for a list of the "short sales."

Miami-Dade County's Value Adjustment Board (VAB) began hearing 2008 real property tax appeal cases in December.

Since there is a reported 70,000 appeals filed in 2008, the hearings are scheduled well into 2009.

A solution for property owners to lowering the cost of owning a home or condominium is the appeal of real property taxes.

The values of properties have been substantially lower in South Florida than at the height of the real estate market in 2005-2006. Since the date of value for tax appeals is January 1st of the current tax year, the comparables required are from the prior year. For instance, in asking for a reduction in 2008, one must present sales data from 2007. In tax year 2009, data from 2008 will be acceptable for use in the appeals.

Comparable sales are generally lower than in years past, and in 2008 and 2009, tax agents will have the use of this data in their appeals. Appraiser Pedro Garcia acknowledged this in the public forums leading up the vote for the Miami-Dade Property Appraiser. Mr. Garcia is a long time Realtor and real estate appraiser with 32 years of experience, and he is an appointed magistrate on the Miami-Dade County Value Adjustment Board (VAB).

A $100,000 tax bill adds $155 per month to a mortgage (for properties located in Unincorporated Miami-Dade County), as the 2008 millage is 1.862% of the total assessment).

The lender typically escrows the taxes and adds it to the overall monthly mortgage payment, increasing the cost of ownership.  This also reduces the purchase price a buyer would be willing to pay for a home or condominium.

If one reduces their tax bill, it would help homeowners keep their houses and lower taxes allow prospective purchasers to acquire homes that are more expensive.

High property taxes not only discourage development, but they also discourage new developments.