It’s been an interesting month, but then, December usually is. Lost in the gay atmosphere of the holidays, it’s easy not to notice that business goes on as usual, and this December didn’t disappoint.
Gov. Ron DeSantis’ property tax elimination plan was back in the news and this time I read it. There are several house joint resolutions that are being considered for the 2026 ballot. All of them to some degree are aimed at abolishing property taxes on properties that are homesteaded. These are the key proposals:
• HJR 201: Eliminates non-school property taxes for homesteads entirely;
• HJR 203: Gradually phase out non-school property taxes over 10 years by increasing exemptions annually;
• HJR 205: Exempt residents 65 and over from non-school property taxes;
• HJR 207: Add a 25% homestead exemption on assessed value for non-school taxes; and
• HJR 209: Add a $100,000 exemption for insured homesteads.
The governor is in favor of eliminating all property taxes on primary homes, viewing them as paying “rent to government.” The legislative approaches favor a menu of options for voters on the ballot.
The impact of any one of these options could raise home values by 7% to 9%, which could be a boom for current owners but harder for first-time buyers and renters. Governments would need new revenue to replace lost property tax and even if school property tax is preserved, other taxes could be eliminated, impacting overall budgets.
The next step for these constitutional amendments is passing the Legislature and then being approved by Florida voters in the November 2026 general election.
The other piece of December business-as-usual is the meeting of the Federal Reserve on Dec. 10. At that meeting, rates were reduced by a quarter of a percent, which was the third straight cut this year. However, the vote was not unanimous, and the indication is that it could be the last rate cut for a while.
As usual, when the Feds cut rates, it does not always translate into lower mortgage rates, but it does give an overall feeling of stability in the country’s financial position.
So, let’s take a look at the November Manatee County sales statistics released by the Realtor Association of Sarasota and Manatee:
Single-family homes closed 13.7% fewer homes this year compared to last year. The median sale price was $487,233, up 13.3% from last year, and the average sale price was $653,655, up 9% from last year. The median time to contract was 59 days this year compared to 45 days last year. Active listings are up 8.4% compared to last year and the month’s supply of properties is 4.2 months, up 7.7%.
Condos closed 16% more properties this year compared to last year. The median sale price was $308,000, down 0.6% this year compared to last year, and the average sale price was $332,602, down 3.6% compared to last year. The median time to contract was 74 days compared to 53 days last year and there were 3.4% more listings this year compared to last. The month’s supply of properties was 6.5 months, down 1.5%.
It’s pretty clear that the Manatee housing market is still struggling from last year’s hurricanes; so far there is no clear narrative or direction. Buyers and sellers will be faced with ups and downs in the early part of the new year and hopefully find their footing going forward.
If Florida is successful in passing almost any type of property tax relief, I agree it would be a boom to real estate. Watch what goes on in the Legislature as the new year progresses.
Wishing everyone a wonderful holiday season enjoying celebrations with friends and family.
