South Florida Property Owners Should Be Prepared to Pay More in Taxes (2020)

Despite the COVID-19 pandemic, taxable property values have risen across Palm Beach, Broward and Miami-Dade counties.  As a result it is anticipated that individual property taxes will increase unless the government officials reduce the millage rates.

According to Florida law, property appraisals are conducted in January which reflected the state of the real estate market pre-coronavirus. If the valuation occurred today, most residential property values would remain consistent but commercial properties like hotels, office buildings, retail shopping centers and free-standing restaurants would likely see a decline in their valuations due to lost revenue and tenant closures. 

2020 Countywide taxable property values based on preliminary estimates are as follows:

  • Palm Beach County: Increased 5.5% to $209.5 billion
  • Broward County: Increased 6.14% to $211.264 billion
  • Miami-Dade County: Increased 4.6% to $322.783 billion

Pending Home Sales See Record Decline in April ’20

According to the National Association of Realtors (NAR) nationwide pending home sales took a large drop in April 2020, down by 21.8% as compared to March and more than 33% year-over-year. This marks the single largest decline since NAR began tracking contract-signing activity in 2001.

Single family home pending inventory levels in Florida were even steeper with a decline of 35.1% as compared to April 2019.

Real Estate Transactions Plunge in April Due to COVID-19

Real estate transactions of all types plunged during the month of April 2020.  On a national level existing home sales were off by 17.8% while commercial real estate transactions dropped to their lowest levels since 2010 with a decline of more than 70%. 

 

Highlights are as follows:

  • Existing single family home sales under $100,000 and over $1 million were down by more than 30%.
  • Single family residential inventory levels have declined by approximately 20% as home sellers removed properties from the market.
  • Median home prices across all housing types rose by 7.4% with gains shown in every region (98 straight months of year-over-year gains).
  • Office and industrial transactions were off by 60% (year-over-year).
  • Hotel sale transactions were virtually non-existent during April, down by 98%.
  • Commercial property prices have risen by 6.5% year-over-year.

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Commercial Office Lease Disposition

Our team assisted a corporate client with the disposition of a 6,634 square foot branch office which was no longer being used and was a drain on the company’s financial resources since the cost of the lease payments were significant.

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How is COVID-19 Impacting Home Sale Transactions? (Palm Beach County)

Although the “official” stats for the Palm Beach County housing market have yet to be published, here are the results for several local area zip codes where are data was obtained from the local multiple listing service.

The accompanying charts shows the number of housing transaction conducted for the years 2018, 2019 and 2020 in six (6) featured zip codes.

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