NPR story today – Property Values went up 4%? Huh?

[CAwireman]

While listening to the radio today, heard that San Diego property values went up 4%.

Did anyone else hear this?

Doesn’t seem to hold water with home property values falling in double digits.

Must be that new math…..

[Portlock]

Got a link or any written report on this?

My housemate/landlord was quick to inform me about this story and wanted my opinion, but I can’t find it anywhere.

He was in denial for a long time about the value of his home declining, so he jumps whenever a story like this comes up (not very often, esp lately).

Would love to see some data, if true.

[Portlock]

Got a link or any written report on this?

My housemate/landlord was quick to inform me about this story and wanted my opinion, but I can’t find it anywhere.

He was in denial for a long time about the value of his home declining, so he jumps whenever a story like this comes up (not very often, esp lately).

Would love to see some data, if true.

[Portlock]

Got a link or any written report on this?

My housemate/landlord was quick to inform me about this story and wanted my opinion, but I can’t find it anywhere.

He was in denial for a long time about the value of his home declining, so he jumps whenever a story like this comes up (not very often, esp lately).

Would love to see some data, if true.

[Portlock]

Got a link or any written report on this?

My housemate/landlord was quick to inform me about this story and wanted my opinion, but I can’t find it anywhere.

He was in denial for a long time about the value of his home declining, so he jumps whenever a story like this comes up (not very often, esp lately).

Would love to see some data, if true.

[Portlock]

Got a link or any written report on this?

My housemate/landlord was quick to inform me about this story and wanted my opinion, but I can’t find it anywhere.

He was in denial for a long time about the value of his home declining, so he jumps whenever a story like this comes up (not very often, esp lately).

Would love to see some data, if true.

[JC]

I did not hear the whole report, but it was not NPR facts that were quoted. It was NPR asking an “expert” about recent UT article with those stats. http://www.signonsandiego.com/news/business/20080720-9999-1h20taxes.html

I’m no expert, but some of the predictions in the article seem a bit shaky.

[JC]

I did not hear the whole report, but it was not NPR facts that were quoted. It was NPR asking an “expert” about recent UT article with those stats. http://www.signonsandiego.com/news/business/20080720-9999-1h20taxes.html

I’m no expert, but some of the predictions in the article seem a bit shaky.

[JC]

I did not hear the whole report, but it was not NPR facts that were quoted. It was NPR asking an “expert” about recent UT article with those stats. http://www.signonsandiego.com/news/business/20080720-9999-1h20taxes.html

I’m no expert, but some of the predictions in the article seem a bit shaky.

[JC]

I did not hear the whole report, but it was not NPR facts that were quoted. It was NPR asking an “expert” about recent UT article with those stats. http://www.signonsandiego.com/news/business/20080720-9999-1h20taxes.html

I’m no expert, but some of the predictions in the article seem a bit shaky.

[JC]

I did not hear the whole report, but it was not NPR facts that were quoted. It was NPR asking an “expert” about recent UT article with those stats. http://www.signonsandiego.com/news/business/20080720-9999-1h20taxes.html

I’m no expert, but some of the predictions in the article seem a bit shaky.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[jonnycsd]

Total taxes collected and the current market value of real estate are only loosely correlated.

Suppose someone bought a house in Clairemont for $200K in 2000 – and a property tax rate of about 1% of value, or around $2K per year. Assessment can only go up 2% per year due to Prop 13.

The oringal buyer holds the property through the peak in 2005 when it could have sold for, say, $500,000. But the Prop 13 tax they actually are assessed and pay is closer to (1.02)^5 * $2K or about $2,420. (Way less than 1% of 2005 market value).

The owner then realizes that values are only going down and decides to sell in 2007. They sell it for $400K – 20% less than peak value – and the new buyer is assessed 1% of the purchase price or about $4,000 NEARLY TWICE the tax the original buyer would have otherwise paid.

This give the county a net increase in tax on the property of around $1,600, even though the market value continues to drop. This is how total tax collected keeps going up even as valuations drop like a rock.

[Author]

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