Albemarle County needs a new way to project future revenue, which takes into account the coming wave of Option ARM resets that will lead to short sales, foreclosures, and further drops in home property values. Combined with commercial real estate foreclosures due to lack of commercial tenants and current commercial RE "owners" unable to re-fi due to being underwater, Albemarle County is seting itself up for years of pain. Toss in shoppers who are keeping their wallets closed? Ouch.
Get a clue (or 5.7 million), Albemarle County.
From The DP:
The next part of the article would be good for a laugh if it weren't so thoroughly contradicted by local and national projections regarding real estate values.
The proposed 77.2-cent tax rate means the average homeowner would pay the same real estate taxes as this year for the next two years, officials say. Assuming real estate values begin to pick up, there would be a slight increase in the third and fourth years, maxing out at a three percent increase in real estate taxes five years from now[....]
"Assuming real estate values begin to pick up" = Wishful Thinking, not financial planning.
bolding = ours
When Will House Prices Regain Their Peaks?
Commercial Real Estate in Cville Area
Higher Priced Homes Sell At Snail's Pace
VHDA Forecast For Area Home Prices