Colorado Housing Market Has Effect On Property Taxes
DENVER (CBS4) - The increase in home sales and home values is now affecting property taxes across Colorado. Those values help determine a homeowners' taxes, which are likely to go up in the years ahead.
Property values have jumped 29% in Denver, according to the city's department of finance.
In Arapahoe, Broomfield, and Jefferson counties, home values are up by 20% or more. In Douglas County it's almost 20%, and in Elbert County, 10%. All are average increases.
Assessors will begin mailing valuation notices on May 1.
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The city of Denver's Department of Finance released the following information from assessors in the Denver metro area.
Adams:
Assessor Patsy Melonakis reported that residential property values increased 19.8 percent, commercial property values increased 11.6 percent, and agricultural property values increased 23.79 percent in Adams County. She also reported that 2015 property values (including residential, commercial, agricultural, and land) have increased in Adams County at levels comparable with surrounding large counties.
"Our current valuations reflect the real estate market recovery and increasing upward market pressures that have resulted in increased sales prices over the past three years," Assessor Melonakis said. "We are not breaking the ceiling of values for this year, just recovering depreciation in value that occurred during the Great Recession."
Arapahoe:
Assessor Corbin Sakdol reported that in Arapahoe County, which sent 205,888 notices of valuation this year, the residential median increase was 22 percent and the commercial median increase was 15 percent. The area within Arapahoe County with the largest gain in property value was Aurora.
"When we look at the real estate market activity there is no question the housing market has substantially improved," Assessor Sakdol said. "The real estate market is booming in the Denver Metropolitan area. We are seeing an improved economy, increasing population and a record low inventory of available homes, along with continued low interest rates. This is a classic supply/demand issue where supply is not adequate to meet market demand and the result is steadily increasing real estate prices."
Broomfield:
Assessor Sandy Herbison reported that, consistent with the surge in the residential real estate market since the recession, the non-multifamily residential total valuation is increasing by 22 percent in Broomfield County. Some of the largest percentage increases in the area are single family properties under $300,000. Approximately 15 percent of that increase, or 3 percent of the 21 percent increase, is attributable to new construction.
"Broomfield experienced significant increases in overall value for all property values reflecting the strong economic conditions across the City and County. Sales data shows that properties were selling for significantly more at the end of the two year period than they were at the beginning. High demand and relatively limited supply fueled the market resulting in competitive bidding for properties in this market group. Individual properties within this property class will experience increases of between 10-30 percent, depending on the neighborhood," Assessor Herbison said.
Denver:
Denver's Assessment Division revalued over 214,000 taxable properties citywide. The median projected increase in assessed value for single-unit residential properties is 29.6 percent in Denver. This includes single family homes, row homes, and condos.
The median projected increase in assessed value for Denver's commercial properties is 18 percent. The downtown area in particular experienced strong demand to lease as well as purchase commercial property. Multi-family residential property also reflects record-setting activity with a median increase of 33 percent.
"Property values across Denver have recovered from the recession, reflecting the desirability and growth of the city," Assessor Erffmeyer said. "Neighborhoods with historically lower property values saw the largest percentage increases in Denver, though each unique neighborhood in Denver saw growth."
Douglas:
Assessor Lisa Frizell reported that the mean single family detached property value increased 19.2 percent in Douglas County. She also reported a 40 percent increase in taxable new construction value from 2013 to 2014.
"While residential values in the Denver Metro area have increased at a similar rate, Douglas County's average residential property value is now almost $415,000; an increase of around 18 percent from the 2013 level of value," said Assessor Frizell.
Elbert:
Assessor Billie Mills reported that real estate market in Elbert County appreciated at a median level of 10 percent. The valuation in Elbert County's assessed properties is based on 1,028 confirmed market transactions that occurred between July 1, 2012 through June 30, 2014. All sales have been trended (or adjusted for time) to June 30, 2014.
"The valuation for Elbert County performed very well in terms of value levels and equity. We measure performance based on standards set by the State of Colorado and by the International Association of Assessing Officers (IAAO). These are standards and guidelines for mass appraisal valuation methodologies," Assessor Mills said.
Jefferson:
Assessor Ron Sandstrom reported that as of June 30, 2014, the estimated value of single family residential property in Jefferson County has gone up 20 percent on average. The average value of a residence in Jefferson County in 2008 was $285,000. For 2015 that value has risen to an estimated $321,000, a 12 percent increase.
"These increases are a result of the change in the economy, a low inventory of residences and high demand for these properties," Assessor Sandstrom said.
