Foreclosures Fuel Decrease of Property Values for the 3rd Straight Year in Miami-Dade County

photo.jpgMiami-Dade County’s official estimate of taxable values released to local taxing authorities show a general decline in both residential and commercial real property values in Miami-Dade County for the third straight year.

The decline for the third straight year stems from multiple factors fueling the collapse of real estate values throughout South Florida. Additionally, South Florida continues to struggle with an economic downturn that has cost many their jobs and sent real estate prices spiraling downward.

According to Miami-Dade County’s Property Appraiser, the 2010 estimate of Miami-Dade County’s taxable value is $192,484,000,000. That figure represents a sharp 13.4% decline as compared with the 2009 figure of $222,141,817,140. Moreover, the new construction taxable value in Miami-Dade County is estimated at $2,626,000,000. And that figure is also a significant decline from the $8,379,000,000 of the previous year.

These drops in real estate value are the steepest since the once roaring real estate market collapsed a few years ago. This figures will also form the basis of Miami-Dade County’s budget, and the budgets of all local municipal budgets in Miami-Dade County. Therefore, there can be no doubt that this will be yet another difficult year for government budgets throughout South Florida, and we will likely see more critical cuts to services as well as major fee increases.

Although there is evidence to suggest that the real estate market has “bottomed out”, it still won’t help the many local governments in need of tax revenue to run their cities. Worse yet, the sharp declines in real estate values here in Miami-Dade County will only continue to worsen until the foreclosure crises has fully run its course.

Hialeah Mayor Julio Robaina said the county’s projection — a 19 percent decline in his city’s taxable property value — was more than he expected, but not a shock. “It should be no surprise to any of us,” he said.
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