Last week Broward property owners received some very exciting news; their property values are rising. It was reported by the Broward Property Appraisers office that home value levels are pre-recession. On average the increase was 3.9%, however coupled with the increase in new construction of 4.4%, which had come to a veritable halt during the recession, the total increase in value tallied in at $132 billion. Cooper City reported the most gains at 8.6%, due to an enormous new residential development, while unincorporated Broward County was the only pocket that reported losses of 8.3%. These numbers are estimates and final numbers will be confirmed on July 1, and property owners can check the property appraiser’s office here, http://www.bcpa.net/ . The role of the appraisal, the appraiser, and home value all are integral in understanding the current real estate marketplace and why buying now, is still a good time in Broward County.
The home values appraisers are using now, are based on sale prices from 2012. 2012 prices are 10% below the current market value on average, if not more. In Broward County the staggering decline in inventory and continued foreign and domestic demand has witnessed gains in market price that are more than 22%, according to the Sun Sentinel. Here is where buyers find some advantage, while sellers may experience frustration. Appraisals are often coming in at lower values because appraisers cannot keep up with the market conditions. In the luxury market, sellers are not accepting financing and contracts are not contingent on the appraisals. At least 70% of transactions in the luxury market are cash. Further, a cash deal does not necessarily mean cash on the table, it can also be through assets and large down payments of around 40-50%. The new structure of payment for condominiums and homes is predicated on sales using cash and not financing. These are all indicators of of a stabilizing market and also a sustainable market.
Next year, appraisals will be based on the 2013 home values, which are nearly all increased and taxes are estimated to increase accordingly. Broward Property Appraiser Lori Parrish released a statement that owners could expect to see only slight increases for next year. Your tax bills, which are issued in November, will be determined by property value and your local government. The City of Fort Lauderdale estimated it gained 4.4% to $26 billion in value. All in all, this is still an excellent time for buyer, seller, and homeowner. Remember to check back with our blog regarding tax exemptions in the fall and over the summer!