“Home values in most U.S. markets continued to decline during the first quarter of 2010, as the Zillow Home Value Index fell 3.8 percent year-over-year, and 1 percent quarter-over-quarter, to $183,700.
For the Olympia metro area, home values fell 6.1 percent to $230,300 during March compared to a year ago. In Tacoma, values fell 5.7 percent to $190,300 compared to March 2009.
Additionally, negative equity across the country remained high, with 23.3 percent of single-family homes with mortgages underwater, up from 21.4 percent during the fourth quarter of 2009. Foreclosures reached a new peak during March, with more than one of every 1,000 (0.11 percent) U.S. homes going into foreclosure during the month.
Foreclosure re-sales across the country remained high during March, making up more than one-fifth (22.2 percent) of all U.S. home sales. Additionally, one-third (32.4 percent) of home sales nationwide sold for less than what the seller originally paid.
Ed. Note: Less home values mean less property tax revenue for the city & county.
How will this affect the City of Yelm’s budget in 2012?
Will they plan well-enough for a continued downturn in home values?
Did they plan their revenue vs. expenses well-enough in 2011?
Their legal bills keep mounting amidst diminishing revenue from home values (property taxes), home sales & sales taxes (Yelm’s 4th quarter, 2009 retail sales decline was largest in county) .
Look for the city to have more cuts (smaller library, etc.) and attempt to find more ways to generate revenue (taxes?) and include “spin” that all will be for the public’s betterment .