Property valuation increases reflect the beginning of the county’s real estate boom
County assessor says residential home values rose an average of 11% and could increase even more the next reappraisal cycle.
In early May, Summit County homeowners should have received a notice of valuation from Summit County stating what their homes were valued at for the latest reappraisal cycle.
Some homeowners might have been shocked to see a jump in their valuations. According to a press release from the county, the median percent change for residential property values throughout the county, including single family homes, duplexes and townhomes, was about 10.69% on average. Condos were up about 11.47% on average.
Unsurprisingly, this has a lot to do with the boom in the local real estate market, but not as much as residents might assume.
All residential properties in Summit County are valued using the market approach evaluation. Summit County Assessor Frank Celico said this means that the county uses the sales of some properties to determine the value of all properties between a certain time frame. For the 2021 evaluation, that data collection period was from July 1, 2015, through June 30, 2020, which is when the real estate boom was just starting to take off locally.
“Honestly, what’s happened since that June 30, 2020 date have been really explosive numbers of sales,” Celico said. “It’s really boomed … since about the date.”
So what does that mean for the next reappraisal cycle? Celico said it’s very likely the homeowners could see an ever bigger jump in their property valuations the next time around, especially if the current real estate boom continues.
“The sales that we’re seeing since then are going to be reflected in the 2023 values because it’s part of that data period,” Celico said. “And so it really bodes for if this trend continues for (whether there will be) significant increases in 2023.”
Celico said homeowners might expect to see even larger increases than they did this year and quite possibly numbers similar to the increases seen in 2019.
“If you look at what happened in 2019, it was (up) 21% for single-family residential and nearly 30% (up) in condominiums in values. … That was two years ago. I would not be surprised at all if we saw increases of that nature in 2023 but it is entirely speculative,” Celico said. “On the one hand, there is a precedent for seeing that kind of growth in values.”
Mike Peterson, senior data analyst for the Summit County assessor’s office, said the state does its reappraisal process every two years to keep market values consistent with taxable values. This means that the current real estate boom the county is currently experiencing won’t be fully realized until 2023.
While some homeowners might look at the rising property valuations as worrisome for their wallets, others, like property owner Katie Schweitzer, said she’s feeling optimistic about where the current real estate market stands.
Schweitzer bought her one-bedroom condo in Summit Cove for $345,000 in August. She said her unit was fully renovated and recently learned that another unit similar to hers — that was not renovated — recently sold for $450,000. Schweitzer said this is what she’s currently focused on, the possibility of what the return on her investment could be, and not so much about property taxes.
“I’m not super concerned about it, but I think it makes sense to prudently run numbers between the professionals that can advise you,” Schweitzer said.
Though valuations could further increase, Peterson said that doesn’t necessarily mean property taxes are increasing at quite the same rate.
“One of the biggest things we need to stress here is that even though you have a change in your value, that may not result in the same increase in your property taxes because the value is only one portion in how you calculate your property tax,” Peterson said.
Peterson said other factors, like assessment rates and assess values, also need to be factored into the equation. For more information about how property taxes are calculated, visit the county assessor’s website.
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