Saturday, February 04, 2012

When assessment values of homes fall, the property taxes collected dwindles right along with them.

Emergency Manager Information  (click title to entry - thank you)
Public Act 4 of 2011, the Local Government and School District Financial Accountability Act, was signed into law by Governor Rick Snyder on March 16th, 2011.  PA 4 replaced and repealed PA 72 of 1990.  There are currently three local governmental units and one school district that are in receivership and have an appointed Emergency Manager (EM).

Below are homes values in Michigan over the decades.

2000 - $115,600   

1990 -  $77,400   

1980 -  $77,200   

1970 -  $67,200  

1960 -  $59,100  

1950 -  $45,400  

1940 -  $29,800

The Chart is the fall of home 
values in Detroit under the Bush/Cheney White House.  

We all know what the auto industry was going through, so it is no surprise the values of homes would be challenged as well.

Thursday, December 11, 2008 (click here)
Falling Prices Stimulate Homes Sales in Michigan

According to the Michigan Association of Realtors, home sales YTD (through October) in Michigan are up by +1.02% compared to last year, from 85,270 houses sold through October 2007 to 86,138 YTD this year. The YTD average home price in Michigan fell by -15%, from $141,681 last year to $120,418 this year. 

For the city of Detroit, home sales are up by a whopping 47% from 6,411 houses YTD in 2007 to 9,420 this year, as the average YTD price fell by 54% to $18,513 this year from $40,011 in 2007 (see chart above)....

What Snyder fails to admit is the 'depression like' economy that began in 2006 were the problems Michigan faced when he took office.  It wasn't the financial disasters in poor communities, it was the loss of value of their property, depressed tax income and loss of jobs and wages.  It has nothing to do with incompetent city governments, but, it does have to do with a crashing domestic economy unattended and free-falling under Bush/Cheney.  Snyder's dictators are unnecessary.  As the economy recovers the cities will retrieve a tax base they can build on.  The State of Michigan should be helping these cities manage their debts while a recovery instills itself throughout the state.

Asking Prices and Inventory for Homes in Detroit Michigan (click here)

As of January 30 2012 there were about 21,844 single family and condo homes listed for sale in Detroit Michigan. The median asking price of these homes was approximately $84,900. Since this time last year, the inventory of homes for sale has decreased by 27.9% and the median price has decreased by 0.1%.....
The current average price of $84,900 for a home in Detroit indicates a home value recovery to 2002 levels.  That is a good thing.  There is nothing wrong with the leadership in the Detroit government.  What needs to occur is for Detroit to be inviting enough to sell those 21,844 single family homes.  It will happen, but, like the recovery ACROSS THE NATION, it takes time.
It is my opinion, Snyder's Emergency Managers will have a very easy job as their intervention will be mostly supported by the Recovery and not anything they did.  Snyder's pie in the sky idea is demented and Anti-American, wayward and desperate because HE HAS NO IDEAS!  
Does he actually believe removing the Benton Harbor lake front from the people to development is going to solve the city's problems?  Real Estate ain't all that.  What is occurring in Benton Harbor is OPPORTUNISTIC GREED.  Real Estate development that will change the foot print of the city in awaiting for prices to improve and then those that invested will dump the lake front property for profits.
Snyder is out of control and quite possibly is a far worse governor than Walker.
That is Governor Snyder's idea of fun and an economic boom for Michigan.  Snyder is a greed merchant.

No, Snyder isn't like the other Midwestern GOP Governors, he is worse. He relies on dictatorship without an electorate challenge.

..."I think it's unfortunate that they've gotten to that, I don't want to see that happen," Snyder said of the high profile fights and protests in neighboring states like Indiana, Ohio and Wisconsin. "If you want to draw it as a contrast, you look at now that they've had those things happen, do they have a productive environment to solve problems? Not necessarily. They're still overcoming the divisiveness, the hard feelings from all of that."
Snyder said he preferred a consensus approach and would continue to resist what he viewed as divisive legislation.
"There's so many things we can agree on and let's get them done," he said.
Snyder's comments, which came after he testified before a congressional committee on job creation, underscored the differences among Republican governors over how they should use the power they won in their 2010 midterm election landslide....

Benton Harbor Light which should be called 'Gentrification Harbor Light.' 

These cities which house some of the most impoverished in the country will be turned into real estate mogul dreams, real estate taxes will skyrocket and the current residents will be residents no more.  Now that is what Synder calls progress.

Synder could almost get away with it, except, he is carrying out his strategy for wealth on the heels of the Great Recession and a Post-Depressed Auto Industry.  This is simply "W"rong and carries with it implications for disaster if it is allowed to continue.  Snyder is not only removing democracy from Michigan citizens, he is doing it repeatedly.  There are city governments throughout Michigan seeking answers to 'stay out of the grips' of the maniacal Governor.  "Snyder the Terrible" should be his name, it certainly is his motto.

Monday, June 13, 2011
...Michael Stampfler (click here) is Pontiac, Michigan's EFM. He has the dubious distinction of being the first Michigan EFM to use new powers granted by Michigan Republicans to cancel a union contract. What went nearly unnoticed was that last week, he dissolved the Pontiac Planning Commission and replaced it with a smaller number of his own hand-picked, unelected members. But he also did another thing. He made a contract for water treatment services with United Water Services permanent, outsourcing the water treatment to them and laying off city water treatment officials....
...To Benton Harbor, this attack, while more ferocious and having sharper teeth, is nothing new.  The town has been a target for decades.  It's ripe for the taking.  It is a desperately poor black town that would probably have gone unnoticed except for its one valuable asset:  Frontage on Lake Michigan, complete with gorgeous sandy beaches and the crown jewel,Jean Klock Park, donated to the city in 1917 "for the children", in perpetuity and now under threat of takeover by the Snyder gang....