Worlfman Reports and gives background on storty!

 

 

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.

http://www.journaltimes.com/news/local/govt-and-politics/racine-awarded-to-demolish-blighted-homes/article_26c37836-dc98-11e1-ac70-0019bb2963f4.html

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?

 

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4 Responses to Worlfman Reports and gives background on storty!

  1. Let Them Eat Cake says:

    I firmly believe that all city employees should be required to live in the city! This will never happen however since the majority of emplloyees working in the Racine City Attorney’s office live outside the City!

  2. Steve S. Stevens says:

    This is very well written and really does tell the truth of the state of the city, something needs to be done. May I suggest forwarding this to all of the alder persons? Can anyone provide a status update on just how much those city hall bathrooms are costing us? I’m hearing 500k, just pathetic.

  3. Great blog post. It’s useful information.

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