Property taxes could be impacted by surge in housing market
NEWTON COUNTY, Mo. – “Home prices, as of this morning when I pulled it up, are on average up 13 percent,” says Jonathan Lundy, Lead Agent with the Lundy Homes Team at Keller Williams.
Local realtor Jonathan Lundy says home values have gone up faster than many have seen.
“We’re up from 149 thousand to 170 thousand, on average. And that’s in the last year,” says Lundy.
With interest rates in the low digits, the housing market continues to surge, where homes are selling within days of being listed and often times for more than the original asking price.
“It really is a great market for the seller and for the buyer,” says Lundy.
“There is quite a few increases,” says Newton County Assessor Cheryle Perkins.
Assessor Cheryle Perkins is getting ready to let some homeowner’s know that their assessed valuation has increased, leading to a higher property tax rate.
“This year, being 2021, is reassessment. So we are required by state to have values as close to market value as we can,” says Perkins.
And when you get a letter from her office notifying you of the change, it would be reasonable to think that the increase is because of the current housing market. But she says that’s not the case.
They actually use sale’s letters from prior years to determine the valuation for a current year during a valuation year. So for 2021, sales letters from 2019 are what’s being used to see what home values are doing.
“Beginning on January 1st of 2020 is the new year, so whatever sales letters I get between now and 2022 is what we use to determine what the value for 2023 will be,” explains Perkins.
But that’s not to say that what’s happening in the market won’t have an impact at all. Taxpayers will more than likely see that when new valuations are done in 2023, using information from this year.
“I wouldn’t have any way of estimating how much of an increase it would be. I would hope not much because I don’t like to, you know, make it rough on the taxpayer,” says Perkins.
For realtors, they hope there’s not a significant drop in market prices coming, since increases like we’re seeing can’t go on forever.
“Locally there’s a lot of industry coming to town, there’s a lot of things that have happened.. there are jobs here,” says Lundy. “And so, locally, we hope that that trajectory will continue. Maybe it slows, maybe it plateaus, but hopefully it’s not a drop.”
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