Racine Property Sales for August 26, 2012
Attempting to verify sales was rather difficult this week – with a record number not showing matching records in the city database, especially the higher value sales. However, the lower value sales have a much better rate of verification and are a much better indicator of where real estate prices in Racine are headed – DOWN. The highest unemployment in the State, high rates of property crime, a burgeoning criminal population that will be an economic drag on the City budget and the City employees suing the City over pay and benefits will continue to lower property sale values and make the City unattractive to potential homebuyers.
High rates of property taxation drive down home values because the more taxes one has to pay, the less income is left to afford a mortgage and insurance. This is why highly paid City of Racine employees choose to live outside the Community – with their current level of income they can afford a much larger house and larger lifestyle out in the ‘Burbs where it is LESS taxing and crime is very low. Higher rates of taxation also makes business less profitable, hence the employees must be paid less – so the City can be paid more – and with the supply of housing exceeding the number of buyers, home prices tumble. This is a strong trend in Racine, and the tax increases slated for 2013 – 6.42% for RUSD, an additional levy of $500,000 for Gateway and who knows what will happen with the City of Racine employees suing the City, the supply of homes in Racine so exceeds the demand that the City is going to spend $$$ to begin tearing down properties! The City is slated to spend $120,000 to tear down 9 properties with an aggregate market value of $517,000 while Bankers are holding many foreclosed properties off of the market – to artificially prop up home prices. There will be no housing recovery in Racine until the City declares bankruptcy – which is coming.
Why is the City Assessor lying about property values and holding the assessed values at an unrealistic market price? Most likely because if a TRUE and ACTUAL assessment were taken, based upon realistic market value – the City of Racine would no longer be able to borrow money – which is what John Dickert is doing at a high rate to finance his pet projects and reward FOJ’s with lucrative City contracts.
From the Wisconsin State Constitution: Municipal home rule; debt limit; tax to pay debt. SECTION
3. [As amended Nov. 1874, Nov. 1912, Nov. 1924, Nov. 1932, April 1951, April 1955, Nov. 1960, April 1961, April 1963,
April 1966 and April 1981]
(1) Cities and villages organized pursuant to state law may determine their local affairs and government,
subject only to this constitution and to such enactments of the legislature of statewide concern as with uniformity shall affect every city or every village. The method of such determination shall be prescribed by the legislature.
(2) No county, city, town, village, school district, sewerage district or other municipal corporation may become indebted in an amount that exceeds an allowable percentage of the taxable property located therein equalized for state purposes as provided by the legislature. In all cases the allowable percentage shall be 5 percent except as specified in pars. (a) and (b):
(a) For any city authorized to issue bonds for school purposes, an additional 10 percent shall be permitted for school purposes only, and in such cases the territory attached to the city for school purposes shall be included in the total taxable property supporting the bonds issued for school purposes. (b) For any school district which offers no less than grades one to 12 and which at the time of incurring such debt is eligible for the highest level of school aids, 10 percent shall be permitted. (3) Any county, city, town, village, school district, sewerage district or other municipal corporation incurring any indebtedness under sub. (2) shall, before or at the time of doing so, provide for the collection of a direct annual tax sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal thereof within 20 years from the time of contracting the same.
GOOD LUCK Brave residents of the City of Racine.
Address Sale Price Assessed Value Difference
1532 Michigan Blvd. $220,000 $254,000 Neg. $34,000
3605 Haven Ave. $139,000 $139,000 -0-
139 Ohio St. $121,000 $142,000 Neg. $21,000
141 Main St. No. 429 $116,900 $159,000 Neg. $42,100
2809 Ashland Ave. $99,500 $90,000 Pos. $9,500
2708 Kenwood Dr. $95,900 $108,000 Neg. $12,100
2221 Winthrop Ave. $92,000 $104,000 Neg. $12,000
3305 Pierce Blvd. $90,500 $113,000 Neg. $22,500
711 Augusta St. $83,000 $114,000 Neg. $31,000
2009 Howe St. $59,000 $84,000 Neg. $25,000
2201 Yout St. $33,674 $88,000 Neg. $54,326
3601 Republic Ave. $30,000 $90,000 Neg. $60,000
946 N. Memorial Dr. $25,000 $36,000 Neg. $11,000
1712 Holmes Ave. $23,500 $77,000 Neg. $53,500
1340 Park Ave. $15,000 $65,000 Neg. $50,000
15 properties sold with an average overassessmnet of $28,000!
Once again I thank Woflman for this report his views are IMHO right on and should he prove to be right how long does the City have before we go belly up?