Yesterday I wrote a diary talking about the stimulus checks due to arrive next week. I asked what people's plans were and whether or not they thought the stimulus package would have any impact. I wanted to know what the real experts thought about our economy and how it was affecting them because, in our neck of the woods, it seemed like life was going on normally.
Well, that was then this is now. Today, the economic chickens came to our home to roost.
This morning over breakfast, we discussed the possibility of selling our home in the next year or two. We like our neighborhood, but we have two duplexes across from us whose tenants have been, eh, difficult for the last two years. Because we don't live in a hot housing market (Chicago, Atlanta, Los Angeles), the housing crisis has not hit our area as hard as others. Several houses have gone up for sale in the last year and, aside from the one across the street, they've all sold. From today's Milwaukee Journal Sentinel:
http://www.jsonline.com/...
Last year, residential property values grew 3.2%, far slower than the previous two years of double-digit growth. But Reavey, Common Council leaders and business representatives said this year's figures show Milwaukee's real estate market is still healthier than those of other cities.
"The reports you hear nationwide are not really reflective of Milwaukee," Reavey said. This market "is pretty stable," she said.
One reason for the difference is that "we never really had the huge run-ups (in housing prices) that you saw in other cities," said Ald. Michael Murphy, chairman of the council's Finance & Personnel Committee.
Well, that's pretty decent news. The value of residential properties has clearly slowed, but it is still moving in the right direction. So, what's the problem?
Reavey released the figures as her office mailed out notices of assessment changes. Assessments are changing on 70,152, or 46%, of the city's 152,831 taxable properties. Of the changes, 51,750 assessments are increasing and 18,402 are decreasing.
Two envelopes arrived in our mail today. I guess I should have played the Powerball today since we are hitting all the numbers. We are in the group of assessments that changed this year. Unfortunately, we are in the group of homeowners whose property values decreased.
Now, what to do? We made improvements to our home this last year to protect our investment. Do we appeal the assessment to maintain our property value as we contemplate selling? Or, do we take the hit, stay put and console ourselves with a reduced property tax bill next year? It's a rhetorical question-either way, we've lost ground.
Oh and the other envelope we got? It was our quarterly retirement account statement. Needless to say, it wasn't good news. For the 3rd quarter in a row.
Regardless of what George says, all economic indicators point to a recession at our house.