Property Tax Uncertainty Continues to Slow Florida Housing Market Recovery
Liz Randall is eager to buy a home on the market for $419,000.
But according to the Orlando Sentinel, she doesn’t plan to make a move until another deal is reached… at Florida’s Capitol.
“I’m going to wait and see what happens with the Legislature and property taxes,” said Randall. “A few dollar’s difference in taxes can either make the purchase worthwhile, or not.”
Real estate and Florida mortgage brokers in the area say the Legislature’s effort to overhaul the property tax system is having its own dampening effect on a market already hurting from a glut of inventory.
Gov. Charlie Crist and the state House have proposed plans to cut property taxes on homes and businesses, with the House going so far as to consider eliminating the levy outright in exchange for a higher sales tax.
The Senate is expected to offer its own approach, possibly as early as next week. But with the two-month Legislature at its midpoint, it is still unclear what - if anything - could emerge as the final plan.
Those in the Florida real estate business say such indecision is causing market uncertainty that could worsen, especially with speculation rising that a special session might be needed for lawmakers to winnow down the wide-ranging ideas now in play.
“The way things are going, I wouldn’t want to sell my house right now,” said Senate Democratic Leader Steve Geller of Hallandale Beach.
Mary Ann Sigurdson, a Casselberry Florida home loan officer, said she sees the effect of the property tax debate every day, with clients once eager to buy now getting cold feet.
“We’re finding that you can’t close a deal,” said Sigurdson, who has been working with Randall.
On top of already-high Florida mortgage costs, the property tax issue is even forcing residents to consider relocating.
“We love Florida, and we would love to stay,” said would-be seller Gary Veenhuis. “But we couldn’t afford the taxes, even in a smaller house. Now, we’re finding it’s hard to sell as the Legislature is talking about changing the property tax system.”
The Orlando Regional Realtor Association reported that the number of homes and condominiums sold in the region fell in February by nearly 39 percent from the same month a year ago. Listings by local real estate agent groups also grew that month to an all-time high of 22,055.
Continue reading in the Orlando Sentinel …
