Property Values Fall In Tampa
The St. Pete Times reports that “Preliminary figures from the Hillsborough County Property Appraiser’s Office show a 3 percent drop from 2007 to 2008. The office has records dating back to 1974. The only other drop since then was in 1992, when values declined by 2 percent.”
The article says the causes stem from the increase in the homestead exemption, the stagnant real estate market and Save Our Homes portability. As for the homestead exemption and Save Our Homes, the proponents of the property tax reform said that it would have the opposite effect and spur activity in the market and we would actually see an increase in revenue. It’s too early to tell yet, but we’ll see.
As for the real estate market, in the long run it will bounce back. The question is how long it will take and how much of a decline in value it will take.
Another related concern is the rise of foreclosures. According to another article in the Times, foreclosures are expected to increase in the summer:
“But brace yourself for a possible wave of mortgage defaults as early as this summer. A huge number of adjustable-rate loans — those made during the housing boom in 2005 — reset with higher interest rates in June.”
