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Sellers who bought at the top of the bubble and now have to bring money to the table if they want to sell - yeah it sucks - big time - but that's the way it is.
Either stay put and don't sell or accept that in most markets nowadays you're going to have to take a hit. And you'll probably be taking an even bigger hit in 2010.
So I guess if I bought something within the last 2 years there is no way I could sell it for a profit now.
I'd be surprised if you sold a home bought in the last 5 months at a profit
Unless you're talking foreclosure and flip perhaps
Vacant land and homes.
But my point was that there is non stop talk of why no one should buy now but if someone can still buy in this market and immediately turn a profit then there must be some great deals out there rather than these homes that most of you are saying are over priced.
Now you know why the entire US economy is crashing as we speak: the banks, car manufacturers, mortgage companies, federal regulatory agencies and government authorities ARE A JOKE.
Wow, you really do lead a bitter existance, huh? No problem, it all seems clearer now.
Property Tax
Arizona charges a property tax for owner-occupied residential real property. There are several classes of properties with varying assessment ratios. The assessment ratio for owner-occupied residential property is 10 percent of full cash (market) value. Tax jurisdictions set tax rates on the basis of the total assessed valuation within their boundaries and the amount of the levy to be raised. Phoenix is located in Maricopa County, and the Maricopa County Assessor is responsible for determining the assessed value of residential property here.
WOW. You got all wound up over my two lines which you quoted?
I am a traditional home buyer, owned three higher end homes and sold my current home FSBO in 2006 and have done exactly as you have; bought up each time. And by the way, I sell when prices rise and buy when prices fall which is the opposite of what most people do. I've been sitting and waiting since this time last year. My patience will be rewarded.
We don't make blanket, idiot statements. Since you have an 'MBA', then I assume you understand basic economics....right now in most parts of the country Supply is much greater than Demand so there isn't an equilibrium.
And reality is that many sellers will have to bring money to the table to close IF they bought at the height of the bubble and have to sell now.
Fact is these sellers OVERPAID due to outlandish appreciation so first that has to adjust downward. Factor in the economic downturn over the last 3 months and the additional pain we are all going to experience in 2009 and 2010. That's why you will see prices adjust a minimum of 30% in the short term. The carnage will be worse for the higher end homes.
I would wager to say that you are NOT a traditional home buyer and this post is a compete lie, because if not, you have just COMPLETELY contradictied yourself full circle. You sold for profit? Shame on you. No one is supposed to, according to you, and the real reason I think you have no idea of what you speak? 30% drop in even the areas that have already HAD that much of one, will NOT happen, period. This market has corrected on the downward about as far as it will go and depending on the area/state, is just fine. Inventory is the problem and why things are taking so long to sell. But price? Not. you are absolutely out of your mind if you think a home that was 650,000 at peak, now about 550,000-575,000, will eventually be valued/sell for $350-400,000 before it's all said and done. Wake up and smell the "reality" man, it ain't happening! Not even in the worst states at this point. That same home in states like Nevada, california, even Florida, probably started at $750,000, went down to 550,000 already, and will NOT go another 30% either. Geeze, we wonder why there are so many delusional buyers out there!!!
Arizona's propety taxes are NOT based on the sales price of THE property. The taxes are based on the valuations of all similar properties in the area. So, even though Property A has not sold for 30 years, the fact that other properties in the area have sold, Property A's taxes can adjust to the current values
Fact is these sellers OVERPAID due to outlandish appreciation so first that has to adjust downward. Factor in the economic downturn over the last 3 months and the additional pain we are all going to experience in 2009 and 2010. That's why you will see prices adjust a minimum of 30% in the short term. The carnage will be worse for the higher end homes.
What you're saying is correct in general. The numbers may vary some is the only thing I disagree with you about. Some markets will adjust more, I think many less than the 30% you quoted. Markets are simply to local to say that homes will adjust X%. Secondly, I don't know about the next 2 years. Again, I think you'll see some variance on a local level. My market is pretty sheltered. I hope we pull out by late spring. The carnage will be worse for the high end home - I agree fully.
Arizona's propety taxes are NOT based on the sales price of THE property. The taxes are based on the valuations of all similar properties in the area. So, even though Property A has not sold for 30 years, the fact that other properties in the area have sold, Property A's taxes can adjust to the current values
Yes, they are.
And you just agreed to the fact yourself up above when you said, "The taxes are based on the valuations of all similar properties in the area. So, even though Property A has not sold for 30 years, the fact that other properties in the area have sold, Property A's taxes can adjust to the current values".
Now since my original post refers to "specifically bubblish areas" (see the asterick in the title?) it means that very few homes have not sold within the last 30 years. Most have sold and that within the last 15 years alone. As entire home price demographics rise & fall they collectively influence property tax rates to rise and fall correspondingly. That's due to the fact that probably only Jesus could squeeze a rock & expect to get any blood out of it. City officials recognize this fact and drop taxes accordingly when necessary*.
* Does NOT apply to NYC. They'll squeeze the dead too!
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