Illinois has high tax rates, yet saw avg values increase by 10% last year (Chicago: real estate market, 2014)

[WilmaWildcat]

Are lower tax rates linked to higher home appreciation?

Kenneth R. Harney
Chicago Tribune

Nobody likes getting tax bills, especially homeowners who are burdened with ever-escalating local property taxes. Last year, property taxes collected by local and state governments rose by an average 6 percent — $293.4 billion in total — almost three times the annual rate of inflation. Continued…

Are lower tax rates linked to higher home appreciation? - Chicago Tribune

[chet everett]

Golly, is this supposed to be other than obvious???

First, homes in areas with the highest effective property tax rates — that is, the average tax rate expressed as a percentage of estimated home values — appear to have appreciated more slowly during the past year and the past five years on average...on average, low to modest tax rates appear to be connected to higher recent appreciation. If you’re on a fixed income and looking at potential retirement areas, or you’re a first-time buyer and affordability is key, tax rates may be an essential consideration.

DUH! It is precisely why many of Illinois communities are in a death spiral -- the high tax rates are literally forcing down values which forces communities to hike the rate in an endless cycle...

The hardest hit towns are precisely the kinds of areas that most need the revenue to have effective local services -- the recent situation in Harvey is the perfect illustration: they were facing laying off most of the fire department personnel and police force. That would have made the remaining residents even more at risk of crime or loss of their homes to fire.

One of the few "bright spots" in the recent election was the defeat of Joe Berrios from his role as Assessor. As he also headed up the Cook Co. Democratic Party it was a given that insiders who hired similarly clouted-up appeals attorneys like Madigan or Burke would shift their tax burden onto others. If Kaegi ends this corrupt practice the burden being shirked by the connected high rise developers might end up being unfairly shouldered by the "little guys" -- https://www.propublica.org/article/c...es-fritz-kaegi

Of course the dearth of valuable property in the impoverished towns won't be so easily fixed...

[WilmaWildcat]

Originally Posted by chet everett

Golly...

Did you miss the topic of the OP? This post was supposed to prompt explanations of how Illinois has high tax rates, yet saw avg values increase by 10% last year. Clearly Illinois has some exception going...

[chet everett]

The headline created CLEARLY is not supported by any data in the link.

Quite the opposite, the link says that while property values rose in high tax states at

average of 28 percent during the past five years

that LAGS the rate for midtier tax states of

35 percent on average over five years

and is much worse than the appreciation in low tax states of

an average 42 percent over five years

No idea where the fantasy of 10% year over year property values is coming from -- https://www.zillow.com/il/home-values/

The median home value in Illinois is $173,165. Illinois home values have gone up 5.4% over the past year

https://www.illinoisrealtors.org/blo...s-shift-lower/

Are you confusing the whole state with the anomaly of Chicago??

The median price of a home in the city of Chicago in February 2018 was $272,000, up 10.6 percent compared to February 2017 when it was $246,000.

BTW Good luck finding those mythical "median priced homes" -- the reality is that the gap between undesirable home in crummy parts of Chicago and sky-high prices for hot areas is worse than just about another city in the country...

Worse, the "hang over" from the 2008 is still very much a part of the landscape regionally -- Negative Equity In The Chicago Area Real Estate Market - Getting Real

How much has this lag cost homeowners? Chicago's Lagging Home Prices Cost you $107Billion

[doodlemagic]

Rising home prices don't do you any good if you dont plan on selling and would like to stay in your home. Great my house is worth 20k more on paper, that does nothing for me when I pay my tax bill. It just continues until I'm forced out of my house by tax rates.

[WilmaWildcat]

Originally Posted by chet everett

No idea where the 10% year over year property values is coming from --

That much is on topic.

Are you confusing the whole state with the anomaly of Chicago?? etc.

No. Kenneth Harney wrote the article. My idea was to find explanations for what Harney could be talking about.

[chet everett]

Originally Posted by WilmaWildcat

That much is on topic.

No. Kenneth Harney wrote the article. My idea was to find explanations for what Harney could be talking about.

Nothing in the article says ILLINOIS prices went up 10% last year. Fact is the very strong price increases in Chicago's hottest neighborhoods are largely seen as contributing to at best a huge "inequality gap" that carries all the negatives of gentrification. At worst the tremendous gap shown by price increases in hot areas while troubled parts of Chicago languish will literally lead to not just a financial bubble but increased levels of unrest -- https://www.weforum.org/agenda/2014/...or-inequality/

Thomas Piketty and the 2014 FIFA World Cup in Brazil have something in common. The bestseller of the former and the social unrest associated with the latter are two recent and vivid reminders of the salience and resurgence of income and wealth inequality.

[WilmaWildcat]

Originally Posted by chet everett

Nothing in the article...

The OP title was lifted directly from the article. The fact it's not explained in the article is the reason for the post. You said you don't know; perhaps someone else does.

[chet everett]

Originally Posted by WilmaWildcat

The OP title was lifted directly from the article. The fact it's not explained in the article is the reason for the post. You said you don't know; perhaps someone else does.

Where in the article is this: Illinois has high tax rates, yet saw avg values increase by 10% last year???


No support for ILLINOIS property values rising 10% last year...

[WilmaWildcat]

Originally Posted by chet everett

Where in the article...

Daren Blomquist, senior vice president of communications at Attom, cautions that there are exceptions to the overall trend here, “notably markets in Texas with high property tax rates but also very strong home price appreciation over the past year and five years.” Illinois has high tax rates (2.2 percent), yet saw average values statewide increase by 10 percent last year.