Rising Property Values: A Double-Edged Sword for Homeowners in Miami-Dade and Broward Counties
Homeowners across Miami-Dade and Broward Counties are grappling with a challenging reality as property values continue to soar. Rising home values, while indicative of a healthy real estate market, also bring forth significant financial implications for residents.
The Current Landscape of Home Values
According to recent estimates, Miami-Dade County has witnessed a staggering 10.7% increase in taxable property values for 2024. This marks the third consecutive year of double-digit growth in the region. Similarly, Broward County is not far behind, reporting a 9.2% increase in property taxable values.
Some areas have experienced remarkable spikes in home values, with notable increases observed in:
- Homestead
- Surfside
- Oakland Park
- West Park
The Burden of Increased Expenses
As property values climb, so do monthly mortgage payments. A homeowner recently shared their perspective with NBC6, stating, “It’s nice that the property values are going up, but you know, when your mortgage is $1,000 more a month than when you originally got it, it’s tough because of the tax, insurance…nobody’s happy with it.” This sentiment resonates with many who have experienced the financial strain that comes with rising costs.
Who Feels the Impact the Most?
Individuals who may feel the brunt of the tax bill are usually those who have recently purchased homes or opted for new construction. According to Broward County’s Property Appraiser, Marty Kiar:
“People that are actually moving in here paying top dollar for properties, they’re paying a lot of their taxes. And of course, if somebody has new construction, that can actually be taxed at a significant amount as well.”
Factors Affecting Property Taxes
The amount homeowners pay in taxes can vary based on multiple factors, including:
- Market value of the property
- Eligibility for exemptions
To mitigate the effects of skyrocketing property values, homeowners can utilize the homestead exemption, which provides relief by limiting annual increases in assessed value. Specifically, the Save Our Homes cap restricts these increases to 3% annually or the Consumer Price Index (CPI) change, whichever is lower.
However, when a homesteaded property is sold, it undergoes reassessment. Kiar notes that non-homesteaded property owners are typically the most affected:
“The people that see the big increases are the non-homesteaded property owners…”
The Bigger Picture: Real Estate Market Dynamics
Real estate analyst Jack McCabe from McCabe Research and Consulting cautions that higher property taxes disproportionately affect second homeowners and rental properties. He adds that the combination of increased taxes and surging property insurance costs could trigger a downturn in the market.
A Shift Towards a Buyers’ Market
Interestingly, McCabe sees a silver lining for potential buyers. He mentions:
“What’s happening right now is all really good news for buyers finally. And they haven’t had any good news in five years. So I think over the next 18 months, we are seeing this transition from a strong seller’s market to what will become a buyer’s market.”
This forecast is particularly hopeful for individuals like Urania Melendez, who has four adult children seeking to buy homes. She expresses concern about the challenges her children face in this competitive climate, stating:
“It’s hard right now.”
Keeping Informed and Taking Action
Residents interested in tracking their property value increases can visit the Miami-Dade County Property Appraiser or the Broward County Property Appraiser websites for detailed information.
Important Notifications
Homeowners should expect their Notice of Proposed Property Taxes (TRIM Notice) in August. For those who feel their assessed property values are excessively high, it is advisable to contact their county’s appraiser’s office or file an appeal with the county’s value adjustment board.
Understanding the implications of rising property values is essential for homeowners navigating the real estate market in South Florida. From tax implications to market trends, being informed can empower residents to make better financial decisions.