At least in the housing market
Lately, I've been watching and reading an awful lot of doom & gloom on the housing market and I'm sure you have too. The National Association of Realtors (NAR) just announced last week that median housing prices are expected to fall in 2007...well, that's not true for Texas. According to Texas A&M Research Center, the trend in Texas will "buck" the national average. The Houston MLS aka "local mls" (which is made up of Harris, Fort Bend and Montgomery Counties) reported a 3% increase over February of last year. In a Press Release issued by the local Mls, single-family home sales were down in March, but it was still the 2nd highest number of sales ever recorded in the month of March...up 23.3% from last month. And our home prices continue to rise.
The Houston area is notorious for our affordable housing in comparison with the rest of the country. The trend is expected to continue. Within all these statistics & numbers is a huge opportunity...so don't believe everythng you're hearing on the cable news channels!
I wish they would stop "drive by" appraisal but I doubt they ever do. In response to your questions, I actually oppose the 10% per year. I think it is too high. However, I don't think most people will by a lesser house in anticipation of a lower increase. "Most" people don't pay close enough attention to these sort of things. Many buyers that I work with have never asked about the history of tax increases or any anticipated tax increase. When the subject comes up, I'm generally the instigator. I recently viewed a client's tax bill that had been increased 107% in 2005. It wasn't a new home and he never even realized the size of his increase.
Posted by: Holly | April 22, 2007 at 10:32 PM
What is your opinion on a 10% yr/yr appraisal increase on homes? do you think it will eventually impact home sales? I hear a bill is in Austin to reduce the the appraisal cap to 5%. I think people will buy a lesser home in anticipation of the appraisal creep. or, they buy their home and find out in 2 years they can no longer afford it. Politicians will say they do not raise taxes but our appraisal goes up yearly putting more money in their pockets. I dont know how many politicians will actually agree or speak their mind on reducing the appraisal cap. In my opinion the appraisal should have a lower cap. They should also stop the "drive by" appraisals of homes! dont park your new car outside your home....your appraisal will go up:)
Posted by: what about | April 20, 2007 at 02:36 PM