Housing Index Is Expected To Show A New Low In Prices

Right at the housing peak, many towns "revalued" real estate for the purpose of substantially raising property taxes. With taxes at those peak values, we've been learning how towns are more broke than people ever imagined possible. Theoretically, housing price drops should reflect in lower property taxes.... where will that leave many local budgets? Specifically, as Meredith Whitney expresses, where will that leave the numerous municipal bonds and bond holders? There's a lot happening in this nation simultaneously... housing, as big a deal as it is, is just one of the symptoms... of a far darker sickness. Is there a Dr. In the house?

Here in our town, they can either raise the tax rate per $1,000 evaluation or riase the property value or both; thus it is a win-win situation for them no matter how the housing market performs.