Tallahassee Real Estate Blog

The 2010 election results are in. What’s next for Tallahassee real estate? New faces in the state and national political landscape could bring many broad changes. Here’s a few possibilities.

Tallahassee Workforce. Governor-elect Rick Scott has campaigned on streamlining government. Once in office will that promise involve large reductions to the state employee workforce? With government being the largest Tallahassee employer, changes would negatively impact home sales and prices. But a truly more productive public sector could mean greater economic growth down the road.

Property Taxes. Many candidates campaigned on smaller government with less taxes. Will this bring a reduction to Florida property taxes, and a larger exemption to home tax assessments? There’s no concrete proposals at this point.

Mortgage Interest Deduction. Some deficit-reduction advocates have campaigned to eliminate this federal deduction, claiming it’s a tax subsidy that distorts the house market and increases the deficit. In the short term, eliminating this would make housing less attractive and act to suppress housing demand. The Federal Deficit Commission will announce proposals this December that may include this idea.

Freddie Mac and Fannie Mae. These massive government sponsored enterprises now own 9 out of 10 new mortgages. They have been the subject of intense debate as some Congress members and economists say they helped cause the housing crisis by assume too much risk. Others say Fannie and Freddie are necessary to help keep mortgages widely available. Private lenders typically apply higher rates and tougher standards. The incoming Congress will philosophically favor privatizing the mortgage market and eliminating Fannie and Freddie. But with split majorities, Congress may not be able to take any clear action.

If you’re in the market to buy or sell a Tallahassee home, please give us a call—we’ll discuss current market conditions, and potential future trends based on the many changes possibly to come.