August 13, 2010

Racine's property value falls $200 million; Area homes worth millions less in 2010

Following a statewide trend, Racine homes lost $179 million in property value last year, according to a Department of Revenue report released Friday.

The falling home values led to a 4.65 percent decline in all property citywide. Racine's total property value for 2010 is $3.9 billion, down from $4.1 billion in 2009.

The city's commercial and manufacturing properties held up relatively well in the down economy. The city's manufacturing value was virtually unchanged from 2009 to 2010, while its commercial property value fell 1 percent.

Nearly every city in Wisconsin saw its equalized value decline this year, according to the Department of Revenue. Kenosha reported a 5.8 percent drop in property value to $6.4 billion. Oak Creek reported a 5.46 percent decline to $3.1 billion and Franklin reported a 6.1 percent decline to $3.67 billion.

In Racine County, all municipalities reported a drop in property value.

Caledonia's property value fell 4 percent to $2.1 billion, including a 4 percent drop in the value of its homes. Mount Pleasant's value fell 5 percent to $2.6 billion, including a 7 percent drop in housing value. Sturtevant's total value fell 3 percent to $528 million, including a 5 percent drop in housing value.

The county's total value slipped 4.3 percent, placing it 63rd out of Wisconsin's 72 counties in property value growth this year. Only nine counties in the state had a positive increase in property value this year. Florence County, in northeastern Wisconsin, led the state with 1 percent growth. 

Statewide, home value fell 3.5 percent, which was better than the national average of 5.6 percent.

The decline in property value has implications for local governments looking ahead to 2011 budgets. While home values fell, local residents likely won't see much relief from property taxes. Local governments likely will be forced to increase their property tax rates to maintain services.

This year is only the third time in the last 50 years that property value in Wisconsin fell, and is the largest decline in value since at least 1959. Property values fell 0.5 percent in 2009 and 2 percent in 1986.

Related stories:

Journal-Sentinel: Wisconsin property values fell $16 billion in 2009

And, because that's a bummer of a story, here's the "Double Rainbow" guy ...

Get more Post! Follow us on Facebook and Twitter. Want to advertise? Learn how!