Carteret County has seen property values drop by more then 25% since the peak of coastal real estate. In Atlantic Beach homes have lost 27% of their value. That means what was valued as a half-million dollar home is now worth $365,000.
Carl Tilghman, Tax Administrator for Carteret County, says the last tax revaluation in the county was in 2007, so this drop in value is a reflection of what has happened since the financial crisis in 2008.
"Banks changed all the rules about leading money and the real estate market took a big hit, there were a lot of foreclosures a lot of short sales that happened, and generally it was economic reasons that caused this to happen and before in 2007 we were really on a high bubble of value in real estate market," said Tilghman.
A local real estate agent says the drop in property value has helped their January sales, and they are up significantly.
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Recent tax valuations in Brunswick and Carteret counties show property prices have dropped by more than 25 percent since the peak of the coastal real estate bubble.
The News & Observer of Raleigh reports properties in the two counties collectively lost $12 billion in value during the economic downturn. The previous tax valuation was based on 2006 market values.
Condominiums or building lots that had been on the market for $300,000 may be worth less than $200,000. Million-dollar homes have dropped well into the six figures.
Real estate agents say the lower values may help stimulate sales by convincing would-be sellers to drop asking prices to realistic levels based on the current market rather than conditions at the peak of the boom.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
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