Real Estate Slow Down????

[SIKSUKR]

DON"T FORGET 1990'!!I remember my dad telling me in the 80's about deflation of real estate and cuz I knew everything I said no way.Then in a few years we had deflation in some cases reaching 50% of previous value.Don't think it can't happen again.

[Lakegeezer]

One problem with the valuations is that it reflects 100% turn-over. There is no way that current prices could be sustained at 2-3 times the volume which is selling today. When the towns add up their billions of valued property, it is a false number. In the past valuations were set at a lower percentage of "average selling price" - and this reflected reality. If there is a serious resession prices will settle. Lake towns are able to tax lake side property as they wish, because there is no voting representation from owners. As lake-front properties become year-round residences, the political climate could change. My ideal valuation would be to set the value at time time the property turns over - and index it up at the offical inflation rate. That way, the speculators would experience true value, yet the homesteaders would experience rational valuation.

[BroadHopper]

I think we are going to see a lot of 'baby boomers' retiring. Many of the seasonal residents will see a drop on personal income tax with the property tax on the permenent residence staying the same. In NH they won't see this opportunity. A second home will be prohibitive. They will either sell the NH property to escape high taxes or move here permanently to save on taxes.
I have witness one lakefront property in Conn valued almost a million dollars having almost a third less property tax than a comparable property on lake Winnipesaukee. It would make since to stay in Conn. when retiring.
Looks like when the baby boomers retire to NH, the politcal climate will look more toward a state income tax to lower the burden on the property tax.