Fort Lauderdale and Broward County Expecting Continued Slump in Prices

According to the Sun Sentinel, the value of Broward County property dropped by more than 5 percent in the past year, one of the largest dips ever recorded and a dramatic reversal after years of double-digit gains, according to a county estimate used to set property taxes.

Preliminary figures released Thursday by Property Appraiser Lori Parrish peg the total tax value of all property in Broward at $166 billion, down about $10 billion from a year ago. The number includes the $50,000 tax exemption on residential property mandated by Amendment One, which voters approved earlier this year.

Parrish warned residents — and municipal number-crunchers — to brace for a far greater drop next year, when foreclosures and reduced real estate prices will take full effect.

Setting appraisal rates was more challenging this year because so few houses are selling, Parrish said. The assessments are done on the neighborhood level, based on home sales the prior year.

Often, entire neighborhoods had no sales, making comparisons difficult. If a neighborhood had none, Parrish's office found an analogous neighborhood, based on historical statistics, and used sales information there, she said.

Based on current figures, Parrish expects the downward trend to continue for the next 18 months. The good news is prices are starting to reach more reasonable levels, she said.

"The sales were so overinflated because of the feeding frenzy of 2005, now we're seeing things start to shake out," Parrish said. "Prices are getting back to about where they should be. Buyers are out there, they just don't want to jump in until they're sure prices have stopped dropping."

Source: John Holland and Juan Ortega | South Florida Sun-Sentinel