Decline in assessed property values is a GOOD thing ?
RE-BLOG FROM FULL ARTICLE Homeowners can expect continued decline in assessed property values – The Denver Post.
County assessors will send hundreds of thousands of property-valuation notices out in coming days, and the flat or declining values that many will show could surprise some homeowners.
Property valuations are made per state law every two years, and the latest assessments will be used in the formula that determines property taxes due in 2014 and 2015.
“Property owners are still getting the advantages of the downturn in the economy,” JoAnn Groff, the state’s property-tax administrator, said at a news conference Wednesday.
The decline runs counter to indices showing big jumps in home values across the state. The Federal Housing Finance Agency home-price index, for example, reports Colorado home prices rose 10.7 percent last year.
But the discrepancy is mostly about timing. Assessors looked at sales over an 18- to 24-month time frame ended June 30, a period when housing markets were still soft.
When home values fell in 2008 and 2009, assessments lagged, triggering a surge in protests from angry homeowners who thought their values were too high.
The 2.5 percent decline in residential-property values would have been larger were it not for the inclusion of apartment buildings, which have jumped in price as vacancy rates fall and rents rise.
“Apartments were uniformly across the metro area very strong performers,” said Jim Everson, Jefferson County’s assessor. Denver County recorded a 22.6 percent increase in the value of high-rise apartment buildings in this appraisal cycle. The value of single-family homes, condos and townhomes, by contrast, declined by 0.9 percent, including a 7.5 percent drop in condos.
Overall, about 60 percent of homeowners in Denver can expect to see lower values on their notices, while 40 percent can expect to see increases, Jacobs said.
Aldo Svaldi: 303-954-1410, firstname.lastname@example.org or twitter.com/aldosvaldi
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FULL ARTICLE Homeowners can expect continued decline in assessed property values – The Denver Post.