Valuations growing
We’ve been following and sharing news of the big increase in residential real estate sales in many Florida communities over the past year and with it, the overall growth in prices. As home values grow, so does the amount of property insurance needed to provide proper coverage. But there’s one other cost that’s likely to go up as well: property taxes.
The South Florida Sun Sentinel has an interesting article that reminds us of how these things work. Like the very basic component of a property insurance premium that is calculated by taking home value x rate, so too is it with property taxes. The rising home values may mean higher property taxes, even if our local governments, school districts, water management districts and the like, keep the millage rate the same for their new fiscal year that begins October 1.
The pandemic and the resulting growth of working from home remotely – no matter where “home” is – has brought flocks of new buyers to Florida. Coupled with historically low mortgage interest rates, many are getting their piece of the Sunshine State. The Sun Sentinel reports home values in Palm Beach County rose overall at least 5% from last year and in Broward County rose 4.3%, with Miami-Dade County likely somewhere in between. Single-family home prices up 12% to 16% over the past year have fueled the increase in taxable valuation.
County property appraisers across Florida will be busy this summer as they usually are, putting together total valuations and presenting them to their local government body, which will set the proposed millage rate. Public hearings take place in August and September before a final millage rate is set, with the tax collector sending out new property tax bills in early November.
LMA closely watches the real estate market as its growth is tied to property insurance accessibility. If any of our readers have experience with closings that didn’t happen because of a lack of available or affordable property insurance, please share your story with us at [email protected].
LMA Newsletter of 3-29-21
