A friend who is a local contractor moved his woman-friend into his home over the weekend. She divorced two years ago and had the martial home on the market for a year as part of the divorce settlement. It was purchased in 2005-6 for $277,000. After 90 visits and 30 some offers, it sold for $250,000. Deduct realtor fees and closing costs and $12,000 in upgrades and fixes, she and her ex split a loss over $48,000.
Local agent I know said they know there are homes being held off the market and rented out in some of the best neighborhoods. Even at that, anything below $300,000 is bid on by competing investors who low ball offers with cash down deposits forcing home buyer's to go in at asking price which is the tax value of the property.
Given the tax value has shrunk considerably, anyone who bought between 2004 and 2008 is jammed between a rock and a hard place.
She went on to say that the upper end of the market is drifting dead in the water for re-sales. If they have money, they shop the area and make wish lists and hire a contractor to build their own.
The local high end contractors are doing well. The developer's have adopted a build two sell one strategy that includes upgrades. These new homes are in new developments that border established communities in which now body knows if it will be completed. The developers are pressuring the county board to eliminate proffer payments. Proffer payments are per housing unit assessments that pay for county infrastructure like schools and EMS charged directly to the developer.
We the homeowner taxpayers are pushing back to keep them in place. We face rising property taxes that would subsidize the developers' profits if the proffers went away. Can you say tax revolt?
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