a 2500sqft SFR in 2002 there went for $450,000, that’s $7800/year in total property tax, or $2250 of that was the mello roos part.
at the height of the market in 2005 and early 2006, a 2500 sqft SFR went for $800,000, or $14,000/year in total property tax, or $4,000 for the mello roos.
remember, the losers that bought at the top can get the 1.25% part readjusted, but they’ll never going to be able to get the $4,000 in mello roos readjusted.
it is hard enough to part with $7800 split into two lump sums. imagine having to cut a $7000 check twice a year to the county! as the property prices continue to correct, a lot of these homeowners are going to just walk away.
and this effect is not just short term,
years from now regardless of the state of real estate, the buyers are going to ask, is that SEH home you are selling a 2005 model? if you say yes, expect to give some serious discount on that home.
