[andrea3821]

Originally Posted by EngGirl

Something big is coming to Florida Real Estate market and soon!

With current interest rates being close to 8% it's expected to see drop in house prices. Affordability remains the same so the higher rates are, the cheaper houses will be.

However, people who moved and purchased homes in Florida in 2022 are all getting shocking news this week. They all are receiving their property taxes, and I am sure good 99% of these people didn't expect such increase coming.
I mean some people who bought houses that had $4K property taxes for 2022 are now have to pay $9K. Some who paid $7K in 2022 will have to pay $12K this year. Smaller/cheaper homes that were 1-2K in taxes in 2022 and sold are now 4-6K...

Even these who live out of state and rent their homes will feel huge increase this year. The house we rented 2 years ago had $4500 property taxes. It is $7000 this year. Landlords cannot take advantage of homestead so they see the same increase as these who moved to Florida in 2022 and purchased a house.

I am thinking we will see more houses on the market soon. High inventory will cause prices to do down considering high interest rate in place too. Not to mention HOI crisis in Florida...

What will happen if people won't be able to sell? Nothing good is coming guys.

Thoughts?

I don’t know. Our mortgage has gone up multiple times as our insurance and taxes have risen. We bought in 2020. It just gets spread out over the 12 months and put into the mortgage. A couple hundred bucks a month difference isn’t making or breaking most people; they just pull back on spending elsewhere to keep a roof over their heads. Rents are worse than mortgage payments even for someone purchasing today versus a few years ago.

The homestead exemption isn’t making a giant difference on more expensive properties and landlords will just pass the higher taxes to tenants, further worsening the rental market.

One thing I don’t understand is when I hear people say prices are crazy and will settle some (which I agree with) but the increase in value is here to stay. How are those not the same thing?? Our house is valued by the property appraiser as well as by an independent appraiser when we got a HELOC to be almost double what we paid in August 2020 when we closed. Zillow is projecting it to go up still. While I think it will cool off some, I also don’t see it falling all the way back down. But to me, value = market price, so.

Back to the topic, I think renters are in much more trouble than owners. Their rates are rising which makes it harder to save. They are going to be the ones paying the inflated prices bc they will just be glad to get into any home once they can get financing. There are always retirees from higher COL places who will also pay whatever bc it’s all relative.

[andrea3821]

Originally Posted by Bobdreamz

The problem with Florida is that it's not TEXAS and by that I mean it doesn't really have any room to grow.
FLORIDA is probably the most Urban state in the entire South at the moment.
There aren't hundreds of Square miles here to build on like in the suburbs of Houston or Dallas.
Texas is nearly 5 times the size of Florida yet our Population only trails it by a few million.
I seriously doubt House prices will collapse because people keep moving here in droves.
We are not Arkansas.

Well, there is still room to grow but the people in those areas (like mine) do not want that. It has been written into our municipal ordinances to restrict construction based on zoning and they are pretty strict when it comes to rezoning applications. This was purposeful as we have almost no govt services like they have in more populous counties (parks, libraries, public events, whatever…we don’t have much of it here). Residents in this area and those surrounding it successfully shut down a toll road through here a couple times now. We may be just kicking the can down the road but for now, yes, there is still property left to develop and quite a lot of it.

[City Guy997S]

Originally Posted by EngGirl

I won't be sharing any link publicly, but I suggest you do the following exercise:
1) go to redfin and search for homes sold in 2022
2) go to County appraiser site where that house is located
3) pull 2023 taxes and compare it to 2022

I was going off by Hillsborough and Pasco Counties.

Ok but do you realize that has been the same forever? The tax/mileage rates don't change that much

So lets imagine you are talking about a 400K house in 2010......tax rate is 2% of value, so $8,000

Now lets fast forward to 2022, guy buys a house/condo whatever for 400K, tax rate is still 2% so that guy also has a tax bill of $8000.

What is blowing your mind is the 2022 purchase was of something that sold a few years early for 1/2 of the 400K it sold for in 2022. Covid definitely fueled the pricing increases.

[City Guy997S]

Originally Posted by EngGirl

Please come back here and let me know what your taxes be next year, in 2024
If you just bought a house your taxes are still using old rates for 2023.

Did you read my whole sentence:

2. The house I just bought has a $5600 tax bill due yesterday. House is brand new so I'm paying on the dirt lot value only this year. Next year I expect the bill to be $24,000 based on what my neighbors pay. Am I worried...............nope. I sold my last house for 4X what I paid for it and had no mortgage.

Part of the due diligence of buying anything is knowing what the future expenses will be!

[mrviking]

Originally Posted by beachmouse

Though a fair amount of that land is government-owned, undevelopable, or has a conservation easement on it for assorted good reasons.

15% has already been developed
14% is state owned
12.9% is fed owned.


That leaves just over 58% open land. Come on in people, the free state of Florida is still open.

[TimAZ]

Originally Posted by City Guy997S

2. The house I just bought has a $5600 tax bill due yesterday. House is brand new so I'm paying on the dirt lot value only this year. Next year I expect the bill to be $24,000 based on what my neighbors pay. Am I worried...............nope. I sold my last house for 4X what I paid for it and had no mortgage.

Ten years from now when your property taxes are $48K, will you still be a happy camper?

[beach43ofus]

Originally Posted by TimAZ

Ten years from now when your property taxes are $48K, will you still be a happy camper?

10 years from now, Florida will still be one of the lowest taxed states in the USA...count on it.

Florida is the state most Americans would like to move to...most of them are affluent and can afford to move.

FLA's net domestic migration is always at, or near, the top of all 50 states. 420,000 moved to FLA in '23...many bought homes.

Florida has several cities/towns/areas that are on all the lists of best places to live/retire, so people will keep coming.

FLA has some of the best weather in the USA, 6 mo's out of the year. That attracts Snowbirds...some buy homes.

Florida has some of the best beaches, and lots of them in the USA...American's love the beach.

Florida's cost-of-living overall is still near the mid-point of all 50 states. Only parts of SE FLA are high.

With all Florida has to offer, & all the land we still have left, Florida's real estate market will continue to outpace most of the rest, most of the time.

For those who can't afford it here now, hoping for a collapse so they can afford it in the future, will be waiting for a very long time...maybe forever.

Jeff Bezos can afford to move to Florida right now, so here he comes!:

https://www.foxbusiness.com/business...ounding-amazon

[aries4118]

Originally Posted by sinatras

A lot of smart people are moving to Northwest Arkansas for the quality of life and low cost of living!!!!!


https://www.wsj.com/lifestyle/travel...-cool-3d1d5a56

Yes. Northwest Arkansas is great.

Northwest Arkansas
https://en.wikipedia.org/wiki/Northwest_Arkansas

[City Guy997S]

Originally Posted by TimAZ

Ten years from now when your property taxes are $48K, will you still be a happy camper?

It can't.........state law says homesteaded property cannot rise more than 3% a year (assessed value).

So 1mm assessed value house, 2% tax = $20,000
next year 1,030,0000 2% tax = $20,600
2026- 1,060,900 2% = $21,218

That of course is if the values are rising, in some cases the tax bill stays pretty flat. On my last house the tax bill fluctuated $127 in 5 years. It actually dropped in 2023 by $4 because the city was likely playing with the mileage rates.

[EngGirl]

Originally Posted by Corrie22

Florida us a huge state....what happens in one area.....the total opposite can happen in another area at the same time

checked different Counties across the state and noticed the same increase. Again, it mostly affected these who purchased in 2022, renting, or without homestead