I'm hearing this question a lot these days. How can property taxes be rising by quite a bit in some areas...while property values are falling. This article is from the Florida Association of Realtors. It explains it in simple terms. Property taxes in my wonderful town, Venice, FL have not been effected but I also own a home in Reno, NV where property taxes are going up even though the values there are still falling.
This is a good question I know in our area the Insurance rates has raised quite a bit I am told it is because of the area we live in.
It seems crazy, doesn't it...The explanation from the article I sighted (click on cost of insurance) is this. Although prices are going down, the cost of replacing a home or parts of it is rising significantly...Insurance companies don't care about market value, they care about replacement costs. If this trend continues with rising construction costs, it seems logical that insurance may keep moving up.
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