Date registered: Jul 2007
Vehicle: 1973 450 SL
Location: Castle Rock, CO
Mentioned: 0 Post(s)
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It is good for buyers BUT sellers who leveraged their houses now have negative equity, developers who built new houses have Zero profit margins in their business ventures and communities will have to reappraise the housing market to reflect the lower value for real estate taxes. That will negatively effect school taxes, municipal budgets and I would guess future tax increases.
When you add in that banks are tightening credit to only allow gold buyers into the market, there are only going to be a limited number of people who can buy those houses. The rest will have to sell their now depressed value house before they can buy a new house or come up with extra cash to cover the negative equity.
Math, and dominoes are a bitch.
Counties don't reappraise, they re-assess based on historical sales. If values drop, the counties simply increase the millage rate on the assessed district so the net collection remains the same. Government never loses when it comes to property taxes. Sales taxes can cause a loss of revenue.
Charter member of the Vast Rightwing Conspiracy and proud of it.
God Bless the America we're trying to create.
--Hillary Rodham Clinton