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Manteca housing prices slip, sliding away to 1997 levels

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Manteca housing prices slip, sliding away to 1997 levels

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POSTED July 18, 2009 2:38 a.m.
Prices in Manteca’s resale housing market have slipped back almost to 1997 levels.

That’s good news for buyers armed with 2009 paychecks. It is bad news for government.

Sometime in the coming weeks, the San Joaquin County Assessor’s Office will mail property value reassessment notices. The new assessment for tax bills being mailed in November by law will reflect the market value on Jan. 1, 2009 It means thousands upon thousands of Manteca’s homeowners will enjoy a drop in assessment – primarily those purchased in the last five years or so.

Property tax bills are roughly one percent of the assessed value although there are factors that can change that number. The basic assessment doesn’t impact Mello Ross and other such taxes as they are not determined by property value.

Simply based on 2007 numbers compared to 2006 numbers in terms of median selling prices, 1,165 Manteca houses that exchanged hands lost $265,300,000 in value. That is somewhat good news for those who have bought homes in recent years either when they were on their way up or even at the start of the drop.

On those 1,165 homes alone, government agencies will lose $265,300 in property tax receipts. How it impacts specific jurisdictions, though is up in the air thanks to the redevelopment agency and the state hijacking property tax receipts. Manteca, for example, only gets just over 10 cents of every dollar in property tax paid thanks to the state siphoning off a cut of the receipts.

That is why the state – since it also uses the property tax money to fund schools – may end up taking the biggest hit when property re-assessments are made up and down California as required by law.

The City of Manteca has opted to delay adopting its final budget for the current fiscal year until late in August when property and sales tax receipt trends – the two biggest chucks of the general fund – are much clearer.

One home that shows the rollercoaster of prices is now being prepared to be put on the market after being foreclosed on by the bank. The home at 1030 Junction Drive was part of Cowell Station development built in the mid-1990s by Morrison Homes as an answer to the flat housing market of the time. They were designed as affordable homes on somewhat smaller lots than the traditional 6,000-square-foot lots of the time.

The 1,984-square-foot, two-story home with four bedrooms, and three bathrooms located just two blocks south of Sierra High sold new on April 24, 1997 for $164,500.

The home exchanged hands on Feb. 1, 2002 for $260,000.

That owner obtained a $500,000 mortgage from Bankers Insurance on July 17, 2006 and a $152,000 mortgage from a private party lender on March 28, 2007.

The home sold for $449,000 on May 7, 2007 about six months after the market peaked with median prices of $413,000 and started its downward drift.

That buyer literally bought the home with nothing down having SunTrust Mortgage in the first position at $359,200 and E-Loan in secondary position at $89,800.

Assuming the bank that now owns it sells for $170,000, they will have taken an $189,200 hit while the secondary position loses its entire $89,800.
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