What an exciting time it is in Indiana history with respect to our property taxes!  I mean, you might find it a challenge to get excited about taxes at all, but Mitch Daniels has made his tax plan reality.  Thanks to bipartisan support Indiana now has legislation that will provide immediate tax relief and guard against future property tax increases.  Mitch's plan emphasizes four key elements:  Property tax cuts, permanent protection through constitutional measures and caps, government spending controls, and improved assessment methods.  If you are interested in learning more read the details @ http://www.mymanmitch.com/pdf_files/Property_Tax_Relief.pdf 

As a homeowner, what does this mean to me?  Hoosiers can anticipate an average of  27%+ decrease in their 2008 as compared to 2007 tax bills.  In 2009, the plan caps homeowner property taxes at 1.5 % of of the home's assessed value . In 2010, that cap tightens down to 1% of the home's assessed value.  Nonowner occupant investments and agricultural land will be capped at 2% by 2010 and businesses will have a 3% cap.

Every month the Metropolitan Indianapolis Board of Realtors (MIBOR) provides its members with market statistics for the 13-counties it represents.  Personally, I enjoy reviewing these reports and feel it's important to share the results (both good and bad) with my clients.  The January '08 results are in and although it is a snapshot view of our marketplace it is an accurate representation of what's happening and what's not. 

Across the 13 counties, 1,449 homes were sold during January '08 as compared to January '07 in which 1,893 homes were sold.  This represents a decline of 23.5% units sold.  However, interestingly enough, out of the 13 counties represented Montgomery County was among 3 counties that actually showed an increase in January '08 volume as compared to '07!  Montgomery County posted a 16.1% increase with 36 residential homes sold! 

Having researched this a bit further I discovered that of the units sold in January it was nearly an equal split of owner occupied homes and foreclosures.  The exception being one new construction sale thrown in the mix.  The message here is homes are still selling and there continues to be great opportunities for investors!

Encompassing the 13 counties, January '08 brought an additional 4,990 new listings on the market.  This represents a 25.5% increase in the number of residential homes available as compared to January '07.  In Montgomery County specifically,  we contributed 48 homes to this total.   The numbers are indeed indicative of the adage "there's never been a greater time to buy"! 

What is this all about?

Well, if you aren’t a Hoosier, you may not be aware that our state is undergoing a major reform to our property taxes.  Governor Mitch Daniels nearly called an emergency session to address the property tax issue in the state of Indiana.  He has made it a top priority in the current legislative session to see that he achieves the objective of reducing the property tax burden.

The Indiana property tax issues have a long history in the coming, however, our current assessment system dates back to over a century ago.  Obviously there have been modifications over the decades to the methods applied (replacement vs reproduction costs vs  2002’s beginning of market based trending), but in essence the “system” is essentially the same.  Some feel this system is antiquated and needs to be evaluated.  Others feel it is not the system but the lack of local government spending control that has created the uncontrollable property taxes our taxpayers face today.  Which is the case?  I invite your opinions on this hot topic.

For additional information on who currently administers the Indiana property taxes, as well as an understanding of where your property tax dollars go, see the Department of Local Government Finance’s recently developed “Guide to Property Taxes”.

Even though our current market-based approach to property tax evaluation is currently being scrutinized, it is the same method used in 48 other states.  Do the other states have it figured out?  Are pastures “greener” elsewhere.  Read this article on other states’ issues/tactics.

What does the Realtor Community think?  See the latest GetRealIndiana.com message.

 Welcome to my new weblog!

Here you'll find information on a variety of events and real-estate related news happening in and around Montgomery County, Indiana. 

First and foremost, welcome to the first posting on my blog!  I think it is important to state the purpose for this forum.  Not unlike other blogs, it’s an opportunity to allow interactive discussion on hot topics, community issues, and share points of interest in our community.  However, I'll forewarn you that the topics, spotlights, and discussions will be real estate and/or community focused.  What do you expect?  I'm a Realtor and this is my passion.

My goal is to initiate a forum by which others can learn more about topics that affect real estate.  Perhaps it is on buying or selling residential property, determining the right investment, searching for commercial property, or understanding our current property tax reform issues.  Whatever the nature, it will hopefully be insightful and give you a flavor of our community.  So welcome aboard, check back frequently for updates, and don’t forget to share your thoughts. 

Now for a few game rules: 

• I invite everyone’s opinion, however, please realize it’s just that …an opinion.  Others are apt to disagree and may vocalize their opinions; however, I ask that we do so respectfully.



• If someone does submit a comment that is offensive or inappropriate, it won't be published.



• If you have a real estate or community-related topic that you would like to see explored, drop me an email so that we can discuss the opportunity.

Best regards,

Lisa Taylor Franke

Broker Associate

RE/MAX Real Estate Associates

Crawfordsville, Indiana

lisa@taylorfranke.com