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Home sales last month dropped to their slowest March pace since 2009
A few homes in our area that initially listed between $225,000 and $400,000 have reduced the listing price by 10% after being listed for 14 days. These are not mega mansions by any means, but very nice, single family homes in very nice neighborhoods. I presume the lister didn't have very many folks interested at this time.
“In addition to the existing pressures of high prices and high mortgage rates, prices for home furnishing will likely rise soon due to tariffs, and rising anxiety among consumers over inflation and jobs may magnify the instinct to hunker down already being felt by many families.”
But we're winning amiright! Has anyone seen my pile of "so much money I won't know what to do with it all"? I can't seem to locate it anywhere.
Several weeks ago there were data indicating strong housing demand despite high mortgage rates and low house supply. Guess the higher furniture costs from tariffs is changing the situation, and that is not encouraging going forward. The full impact from tariffs has yet all played out.
We are seeing houses in our area are staying longer on the market as well. During 2008, some houses took themselves off the market when they reached 90 days, and re-listed again (without dropping the prices) a week later so to reset the clock.
Not for nothing, but I have a neighbor, nice family, male head of household works in finance. They bought their home a hear or two before my wife and I. Listed their home several months ago for way above market. The thing has sat for quite some time, and has little hope of selling right now.
Hi @hank To the best of my knowledge, Michigan is the only state that has this real estate tax inflation protection (noted below). And areas not too far from you have seen vast property value rises in the past twenty years for new purchases. A hot real estate market, eh?
The Headlee Amendment, a 1978 amendment to the Michigan Constitution, limits local property tax revenue growth to the rate of inflation, plus new construction. It effectively rolls back millage rates when property values rise faster than inflation, preventing excessive tax burdens on homeowners. This amendment, along with Proposal A, permanently reduces millage rates during periods of economic growth. Here's a more detailed explanation: Purpose: The Headlee Amendment was created to prevent accelerating property tax burdens caused by inflation, property value growth, and government service expansion. How it works: If a local government's taxable value increases faster than inflation, the millage rate must be reduced to limit revenue growth. This is known as a "Headlee Rollback". Headlee Override: Voters can approve a "Headlee Override" to restore the original millage rate if it has been rolled back. Proposal A: Proposal A, passed in 1994, further limits the growth of taxable value on individual properties, building on the Headlee Amendment's revenue limitations. Impact: Headlee and Proposal A can lead to permanently reduced millage rates, even during periods of economic recession, as there's no mechanism to restore the original approved rates. Voter Approval: The Headlee Amendment requires voter approval for any local tax increases or new taxes established after the amendment's approval.
Comments
But we're winning amiright! Has anyone seen my pile of "so much money I won't know what to do with it all"? I can't seem to locate it anywhere.
We are seeing houses in our area are staying longer on the market as well. During 2008, some houses took themselves off the market when they reached 90 days, and re-listed again (without dropping the prices) a week later so to reset the clock.
same in mid-atlantic, but denser new homes are competitive, selling ok via builder price cuts & incentives. (builders also facing rental overbuilds)
still a jobs effect for now.
The Headlee Amendment, a 1978 amendment to the Michigan Constitution, limits local property tax revenue growth to the rate of inflation, plus new construction. It effectively rolls back millage rates when property values rise faster than inflation, preventing excessive tax burdens on homeowners. This amendment, along with Proposal A, permanently reduces millage rates during periods of economic growth.
Here's a more detailed explanation:
Purpose:
The Headlee Amendment was created to prevent accelerating property tax burdens caused by inflation, property value growth, and government service expansion.
How it works:
If a local government's taxable value increases faster than inflation, the millage rate must be reduced to limit revenue growth. This is known as a "Headlee Rollback".
Headlee Override:
Voters can approve a "Headlee Override" to restore the original millage rate if it has been rolled back.
Proposal A:
Proposal A, passed in 1994, further limits the growth of taxable value on individual properties, building on the Headlee Amendment's revenue limitations.
Impact:
Headlee and Proposal A can lead to permanently reduced millage rates, even during periods of economic recession, as there's no mechanism to restore the original approved rates.
Voter Approval:
The Headlee Amendment requires voter approval for any local tax increases or new taxes established after the amendment's approval.