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October 25, 2006

The other reason for concern about a slowdown in housing sales

Builders have to keep dropping prices to sell new houses the longer they stay on the market. That, in turn, depresses existing home prices.

And that, in turn, eventually affects appraisals. That, then affects the property tax base.

How much? I’m not going to try to be any more specific than in my Oct. 19 editorial. I’m just saying it’s something to watch for.

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