Article Courtesy of The Sun Sentinel

By Scott Wyman

Published September 8, 2008 

Blame damage after Hurricane Wilma. And blame families accepting fire-sale prices for condos they inherited.

Although condo values declined across Broward County in this year's property tax roll, three cities suffered extreme drops, well beyond what occurred in neighboring communities. About half of all condos in Coconut Creek, Deerfield Beach and Sunrise lost at least a quarter of their value.

Values on some units are lower than they were two decades ago. At the heart of the downward spiral in the three cities are lower-priced senior communities: Sunrise Lakes, Wynmoor Village in Coconut Creek and Deerfield Beach's Century Village.

"It's a buyer's market," said John Nelson, a condo leader in Sunrise Lakes. "There are so many places for sale now that you get your pick. If someone wants to sell, they have to drop their price."

The 25 percent-plus drops in the value of 22,000 of the three cities' 44,000 condos slashed almost $700 million from their tax base. The result will shift more of the tax burden to other property owners. Coconut Creek and Sunrise are looking at raising tax rates, while Deerfield Beach is cutting programs and raising other fees.

The declines were so steep that some city officials have pressed Broward County Property Appraiser Lori Parrish to take a second look. Her office, though, is standing behind the new values as accurately reflecting the real estate market in those cities last year.

"These are mainly retirement complexes and what has happened is more magnified because there are so many in a small area," Parrish said. "These areas went up rapidly in value and now have gone down rapidly in value."

Other communities, such as Fort Lauderdale and Hollywood, didn't see the same effects on condo values or their overall tax rolls. They have larger mixes of condos, ranging from older complexes inland restricted to people 55 and older, to newer high-rises downtown and on the beach.

Condo values set by the Property Appraiser's Office declined an average of 10 percent, down from an average of $189,000 last year to $170,000 countywide this year. The average value of single-family homes remained stagnant.

The sharper drop in Sunrise goes back to Wilma's devastation in 2005.

The hurricane rendered many buildings in the Sunrise Lakes complex uninhabitable. Some were not ready for occupancy again until spring 2007. Many residents never returned or couldn't afford the repairs, and instead sold out for cut-rate prices.

Sunrise Lakes units that last year were valued at $71,000 now are listed on the tax roll at $43,000; those listed last year at $110,000 are now set at $67,000.

With Coconut Creek and Deerfield Beach, Parrish and her top appraisers say the dramatic drops in values relate mainly to the weakness in the seniors-only condo market.

They are harder to sell because of the age restrictions, and the next generation of seniors is looking more broadly across the nation for retirement options. The Property Appraiser's Office said that after residents die or move to nursing homes, families are selling the condos for minimal prices.

Some parts of Wynmoor that were assessed at $122,000 last year are down to $68,000. Units in Deerfield Beach's Century Village valued at $89,000 are now listed on the tax roll at $61,000.

"The people who live here are very happy, but when they pass, the heirs are dumping [units] for whatever they can get," said Coconut Creek City Commissioner Leonard Freund, who has lived in Wynmoor for 27 years. "They are causing the market to fall because they don't want to pay the maintenance. They panic and want to convert to cash as fast as possible."