What if I were to tell you that there's an article on the south Florida real estate market in today's Sun-Sentinel that blames property taxes for the lack of a rebound? Would you be surprised? Me neither.
Many were left out of the market during the housing boom of 2000 to 2005 because homes were too expensive. But now, even with sellers desperate and prices plummeting across South Florida, first-time buyers still can't realize the American Dream with property taxes remaining too big a burden and lenders tightening credit standards.Way to remain objective in your news reporting there, bucko.
Also, way to be completely and totally wrong. Taxes aren't the problem, or at least, they're not the primary problem. The problem is that houses are still too expensive. So are condos and townhouses, though those are falling more rapidly than the cost of single-family homes. In 2007, housing costs as a percentage of median income in Miami was 42.7%, compared to a national average of 28%, and while housing prices have come down, they haven't come down that much, especially if you want to own a single-family home. As I've said before, you can cut the tax rate to zero on property, and the people making the median or slightly above it still aren't going to be able to afford a $250,000 house. They might have problems with a house that costs half that much.
No, tax cuts aren't going to help this market. Increased wages and/or a drop in the cost in housing are the only things that will do that. Everything else is just sweeping back the tide.