If you’re a recent or current homebuyer or seller, tell us what you’re experiencing in your market!
Crazy. There’s no other word to describe it.
As a real estate investor…its fantastic. Property values going up…rent going up. On the flip side, there is not much to buy with a decent ROI. I suspect the coming interest rate hikes will temper the real estate market for awhile, especially for those that are payment buyers. The current rate of increase is unsustainable.
I believe that people need to stay put and don’t buy houses to force the Housing industry to lower the prices.
There isn’t a “housing industry” that sets prices. It is rather the very typical “it is worth what someone is willing to pay.” Right now, at least locally in the Phoenix area, investors are snatching up every property they can…usually before those who want to purchase a home to live in can even make an offer.
North Ga. it’s hot as a firecracker. In areas, big investment firms are buying entire new subdivisions for rental properties. Between inflation and mortgage rates increasing, I expect to see noticeable cooling down before the end of the year.
People staying put is the problem. There’s such low inventory of homes that it’s driving up prices. Simple supply and demand. Interest rate hikes will cool the market.
As of 3/31/2022 the median price for a SFR home in the Boise area is $549,826, that works out to an average of $320 per sq ft. It’s an increase of 13.88% over 12 months ago.
The homes I purchased in 2012 have gone up 400% in market value since then.
Hot. One house in the neighborhood listed in October 2020 for $465,000. They took it off the market after a week, but listed it again In early March for $625,000. The first day on market, they had an open house on a Saturday and there were at least 12 cars out front when I drove past. It sold that day. My ex wife is a realtor and almost all her deals involve multiple offers. It’s great if I want to sell, but since I don’t plan on selling, I just get to enjoy higher property taxes.
This house is about 20 miles from where I live. They had an open house for a “fixer upper”. House was listed for 180 thousand. It eventually sold for 330 thousand.
This was 2 months ago.
A higher assessment for your home in an inflated housing market area does not automatically mean a higher tax bill.
Property taxes are typically based on a home’s value for comparative purposes. Most property taxing authorities are referred to and typically bear the name of “board of equalization” because the intended purpose is to make property taxes equal. The best way to do that is to compare market values and make tax assessments based on comparative values, not the absolute value. The adjustment from absolute value to comparative is typically done by adjusting the mil rate.
If you home’s assessed value increases at a rate higher than that of the neighborhood then you probably have grounds for an appeal.
Recently property valuation notices were sent out here and I was very surprised how many people were screaming on Nextdoor about how their valuations went up 10, 15, or 20% and their taxes would also go up 10, 15 or 20%.
Yep…I’m not aware of cities or the county adjusting mil rates
They review mil rates every tax year and adjust them to assure they’ll come close to anticipated revenues or “tax levy.” It’s usually announced to the public before tax notices are sent out.
Listen for “proposed mil rate” and/or “tax levy” on the local news… then bend over and touch your toes…
What is a mil rate? I don’t think our property taxes have that as a part of the formula. I do know that homes that have sold recently tend to have higher taxes than similar homes in the same area that have not sold for many years, and that homes that have had certsin types of remodels (adding rooms, bathrooms, square footage, etc.) also have their taxes raised.
A mil is 1/10 of one cent or one/thousandth of a dollar. So a property tax rate of one mil is equal to the value of the property times 0.001.
So a house worth $400,000 with a tax set at a mil rate of 1 mil would be taxed at $400. ($400,000 X 0.001 = $400)
Homes with improvements are typically judged to be worth more so if you have a house worth $400,000 and add a swimming pool and a rec room and it’s appraised market value goes from $400,000 to $500,000, and the mil rate is 1 mil the tax bill will increase from $400 to $500.
Well, definitely not part of how our property taxes are set. “The Assessed Value divided by 100, times the tax rate (set in August of each year) determines property taxes…” But assessed value is a weird mix of a percentage of Full Cash Value and Limited Property Value.
The places that use mil rates are effectively dividing the assessed value by 1,000. Your authority’s “tax rate” is simply a mil rate divided by 100.
Some single family homes right next to One Infinite Loop were listing for <$500K after the '08 crash! And to think it sounded overpriced.
That’s what the real estate market does… it changes. It sometimes goes up and sometimes it goes down. In 2012 I bought a residential building lot listed for $130K for $90K. In 2005 it had been listed, and sold, for $350. This year a comparable lot in close proximity sold for $1M and another is listed at $1.25M.