Property values actually increased

This is one of those article that you ahve to read betwen the lines . What we all have been waitting for a floor to the drop in valeus is what i get from this reading
give your opinion


Property values actually increased in 20 South Florida cities in 2010, offering the battered real estate market its first signs of life in three years.
Taxable property estimates released Wednesday were a glimmer of good news for property owners and those tasked with drafting budgets in South Florida’s hard-hit city halls and county chambers.

Overall, property values — commercial and residential combined — were still down 3.3 percent in Miami-Dade County and 1.9 percent in Broward County, according to county property appraisers’ estimates. But 2010 was markedly better than 2008 and 2009, when the declines were in the double-digits.

For those in charge of writing county budgets, this year’s estimates compare favorably to 2010, when county leaders had to grapple with value declines of $29.9 billion in Miami-Dade and $19.4 billion in Broward. A large chunk of revenue for cities and counties comes from property taxes, and for the past three years elected officials have had to either raise tax rates or cut services.

For South Florida property owners, the 2010 estimates signal that the darkest days of the housing bust may have passed, although a full recovery appears to be a ways off.

“We’ve got 10 cities whose taxable estimate went up, and we have 21 cities whose taxable estimate went down,” said Lori Parrish, Broward County property appraiser. “We’ve seen several areas where the values have gone up—predominantly on the east side of town near the water and in some higher-end communities out west.”

In Miami-Dade, 10 municipalities had value increases last year, after all 37 were in negative territory in 2009. Many of the cities that declined by double-digits in 2009 saw only modest declines last year.

Downtown Miami notched the largest year-over-year increase in the region, with the tax base growing 10.9 percent in 2010, after shrinking 11.2 percent in 2009. Most of the increase came from new construction in the area, as new condo buildings wrapped up construction and finally came online. New construction downtown was valued at $1.4 billion, up from $362 million in 2009.

Other cities to swing into positive territory included Key Biscayne (up 1.5 percent), Sunny Isles Beach (up 2.9 percent) and Pinecrest (up 0.8 percent). Coral Gables was just slightly better than flat for the year and the city of Miami had a 3.8 percent decline.

“The idea that we’ve bounced back is good,” said Key Biscayne Mayor Frank Caplan. “The decline took hold and now it’s ticking up again. It’s absolutely better than going in the other direction.”

New construction was down significantly across the region, an indication that South Florida is still hurting from the mid-decade building boom and the foreclosure crisis that followed.

New construction in Miami-Dade dropped from $2.7 billion to a net of $1.5 billion, the largest drop in the last five years. In Broward, new construction plunged from $1.5 billion to $633 million.

“That’s the biggest problem we have right now—nobody’s building anything,” said Miami-Dade property appraiser Pedro Garcia. “Before, you could sit in my office and you could see cranes all over. Now you can see two or three.”

Miami-Dade’s largest value declines occurred in the southernmost sections, with Homestead and Florida City posting losses of 9.6 percent and 15.4 percent, respectively. In 2009, Homestead values dropped 31.2 percent.

In Broward, Cooper City swung into positive territory, adding 2.2 percent to its tax base. Values were up 0.5 percent in Pembroke Pines, and up 1.4 percent in Weston. Values dropped slightly in a number of cities, falling 3.5 percent in Fort Lauderdale, 2.2 percent in Hollywood and 1 percent in Miramar.

Despite the drop, Miramar mayor Lori Cohen Moseley saw reason for optimism in the numbers.

“The one percent [decline] is a little bit better than we had estimated,” Moseley said, adding that the number of foreclosures in Miramar has stabilized. “We’re on the upswing, and that’s the most important message to get from this.”

The estimates released Tuesday give cities, school boards, hospital districts and other taxing authorities a basis to start drafting budgets for next fiscal year. Final tax rolls will be released on July 1, documenting any changes to the estimates, and property tax bills will be mailed to homeowners in August.

In Sunny Isles, where values increased 2.9 percent after 2009’s 8.8 percent drop, Mayor Norman Edelcup anticipated a much smoother budget-writing season.

“We were cautiously optimistic that we’d maybe see a 1 percent [change] plus or minus,” he said. “The fact that we’re on the positive side is a good thing.”

Edelcup said he would recommend holding the property tax rate steady this year, and the rise in values would make that an easier process during the budget-writing season.

“Everyone is very sensitive to the fact that taxpayers don’t want to see their taxes go up,” he said. “We’ll be able to get the same level of service without raising taxes.”

Not raising property tax rates appears to be a widely embraced decision this year, after voter backlash over 2010 tax hikes led to the recall of Miami-Dade Mayor Carlos Alvarez and Commissioner Natacha Seijas in March.

“Raising taxes is not on the table,” in Homestead, Williams said.

In anticipation of bringing in $1 million less in property tax revenues, Florida City has already reduced its spending, Mayor Otis Wallace said.

The city has cut three jobs and consolidated four jobs into two positions, a move that has saved about $225,000. The mayor’s assistant now serves as the city clerk and the personnel director is also the zoning director.

Property value declines, while modest, are likely to reduce revenue further in already lean county budgets. Miami-Dade’s property tax rolls had already shed more than $50 billion during the downturn to reach $192.2 billion, so another 3.3 percent drop is that much more painful. In Broward, the 1.9 percent slip means the county’s tax base, at $125.6 billion, is 28.7 percent below its 2007 total of $176.1 billion.

An 8 percent decrease in taxable values in North Miami will force city officials to consider even more cuts after last year’s budget shortfall forced layoffs, furlough days and salary reductions across almost every department in the city. The 8 percent decrease comes on the heels of a 20 percent drop the year before.

In Pembroke Pines, the city scaled back employee pension benefits and implemented a 4.5 percent pay cut for City Hall workers last year, so this year’s 0.5 percent value increase is welcome news. Still, it’s not enough to spark any significant spending increases, said mayor Frank Ortis.

“I think we have turned a corner, but we’re not there yet,” he said. “Without a doubt, no raises right now.”

While property value estimates cover the housing market during the 2010 calendar year, property appraisers have also been tracking property values this year. Both say prices have either hit or neared a bottom, but what happens next will be determined by the trajectory of the foreclosure crisis.

More than 91,000 cases are currently pending in South Florida courts, with banks and homeowners sparring over who owns the note on the property, and whether or not the foreclosure documents were improperly signed.

Additionally, 14.4 percent of South Florida homeowners are behind on their mortgages, and thousands more are underwater, meaning there are many more properties set to enter the foreclosure pipeline.

Parrish said she noticed significant housing value differences in well-maintained neighborhoods and in areas where foreclosed properties have been left to disrepair.

“Until we get all these foreclosures processed — some of them have been abandoned for three years — and get them sold and families move in and give them some [tender loving care], our property values aren’t going to stabilize until that happens,” she said.

In the meantime, the deep descent of home values is likely to taper off, meaning little relief for thousands of homeowners who already owe more on their properties than they’re worth.

Tom Blumer, of Miramar, bought his house in 2001 and is hoping to move to Aventura in the future. The problem: his house is now worth substantially less than what he bought it for.

“I want to try recoup the investment on my house,” he said. “I keep hearing that the market will get better. I don’t know. Maybe eventually it’ll turn around.”

Miami Herald reporters Tania Valdemoro, Nadege Green and Mike Vasquez contributed to this report.





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