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Dubov: Real estate drop to continue
By BOB McCLURE
| Article published on Tuesday, Oct. 20, 2009 |
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SEMINOLE – Pinellas County Property Appraiser Pam Dubov believes residential real estate values will continue to drop slightly in 2010 but not nearly as severe as the two previous years.
Speaking at the monthly Seminole Chamber of Commerce luncheon, Dubov said the Pinellas market has leveled off on single-family home sales but not yet on condominium sales.
“The fourth quarter of 2008 and where we are now aren’t that far apart as opposed to previous years,” Dubov said. “But we haven’t hit bottom yet on commercial. I’m not a rocket scientist, but based on all the vacancies I see in many of the strip centers, it’s got a ways to go.”
One of the biggest questions Dubov said she receives is why residential market values go up but assessed values of property goes down.
Market value is based on Jan. 1 assessments, she said. In a descending market, values can drop by the time TRIM notices go out in August and tax statements arrive in November. Meantime, assessed values can climb under terms of the state’s Save Our Homes tax cap.
This year, Pinellas taxes increased 1/10th of 1 percent, Dubov said.
“A lot of people lost 10 to 15 percent of their market value but their assessed value went up,” she explained. “About 160,000 residents were affected and, believe me, I think most of them contacted us to ask why.”
Countywide, Dubov said, taxable values were down 11 to 12 percent and market values dropped 18 to 20 percent.
She said local and county governments would likely have less to work with again for fiscal year 2010-11, as values overall continue to fall.
“It’s too early to say but by all indications, commercial values will go down and when that happens tax values go down because they are not protected by the (Save Our Homes) cap,” Dubov said.
A Constitutional amendment is on the 2010 ballot that, if approved, would cut the annual business property valuation cap from 10 percent to 5 percent, which would put commercial property tax caps in a similar position to the residential cap of 3 percent.
The amendment would also provide first-time home buyers with an additional $25,000 in homestead exemption that would be decreased 20 percent per year over five years.
Dubov said she agreed with the concept of lowering the commercial cap to 5 percent, which would put less of the tax burden on commercial property owners. However, she isn’t in favor of the additional $25,000 in homestead exemption for first-time home buyers because it ends after five years.
“This isn’t something that’s good,” Dubov said. “If a young couple can afford a house with the additional $25,000 in homestead exemption, who’s to say they will be able to continue to afford that same house when that additional exemption ends? I don’t think it’s going to do much good for us.” Real estate will continue to drop.
In other chamber news:
• Two members of the Seminole High School Band Boosters were on hand at the luncheon to speak briefly about the group’s efforts to raise about $380,000 to send the band to the 2010 Macy’s Thanksgiving Day Parade. Seminole is one of seven bands nationwide selected to participate in the prestigious event. Among other fundraising efforts planned, the boosters will be selling hot dogs, hamburgers and other items Nov. 22 at Lake Seminole Presbyterian Church during the Bright Before Your Eyes Christmas Parade.
• The Seminole chamber plans its Multi-Chamber Business Expo Nov. 20-21 at the Seminole Mall. The vendor’s fee is $50. For information, call 392-3245.
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Article published on Tuesday, Oct. 20, 2009
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