Home Resales in U.S. Fall as Foreclosures Push Prices Down Most on Record

[marmar]

U.S. Economy: Home Resales Fall, Prices Tumble Most on Record

By Timothy R. Homan

Nov. 24 (Bloomberg) -- Home resales in the U.S. dropped in October and prices fell by the most on record, signaling a deepening housing recession going into 2009.

Purchases of existing homes slid to an annual rate of 4.98 million, lower than forecast, a National Association of Realtors report showed in Washington. The median price fell 11.3 percent from a year earlier, the most since the group began collecting data in 1968.

Today’s figures indicate a renewed downturn in an industry that showed signs of stabilizing this year, hurt by the credit squeeze and record mortgage foreclosures. That may raise pressure on President-elect Barack Obama to aid homeowners and potential buyers as he assembles a record stimulus package.

“Home sales will continue to fall over the next few months because of tightening credit conditions,” said Sal Guatieri, senior economist in Toronto at BMO Capital Markets, which had the closest estimate for the sales level among 67 forecasts in a Bloomberg News survey. “Underlying demand appears very weak” because “many sales are coming from cheap prices on foreclosed properties,” he added.

Obama is scheduled to hold a press briefing in Chicago at noon New York time today to unveil his economic team and discuss his response to the crisis. Obama aides and Democratic Senator Charles Schumer have said a stimulus package of as much as $700 billion may be needed to shore up the economy. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aE4zf50ys1zo&refer=home

[Crazy Dave]

1. They keep raising our assessment values for property taxes though

According to our local property appraiser our homes are worth about 30% more than what they're worth in the current real estate market.

There is a cap but it's based on the appraised value at the time of the purchase and is allowed to increase up to 6%.

[louis-t]

2. Same thing in MI

State Equalized Value (SEV) is what the state feels home is worth. Taxable value is the amount used to figure property tax. SEV is always higher than or equal to taxable value. When a home sells, cap comes off of taxable value and it is raised to match SEV. What's happening now is that SEVs are coming down, but taxable values are still going up where possible. My SEV is the same as my taxable value because I bought 3 years ago and fought my taxes. It has been going down $100 a year since.

[Mari333]

3. how did you fight it?

Im in MI and I also bought my home 3 yrs ago for 120,000. I looked it up on zillow.com and I doubt I could sell it now for that price. But I am still being taxed for the price I bought it for
so how did you fight it?

[louis-t]

4. When you receive your assessment in Feb

there is a notice of hearings on the postcard to challenge your assessment. You have to call and set appt. Get a Realtor in your area to help with the comparable sales if you need them. 1 mile radius, sales for the last 6 months of similar homes. I brought comparable sales, also they had my square footage wrong so I brought proof of that. They may not lower your taxes much, but they will lower them if you have a reasonable case.

[Mari333]

5. thanks :)