If you own property in Routt county, you likely just received your 2019 property assessment. And you in shock . . . right?
But first, thanks for watching the May market report reporting March numbers. It’s spring time in Steamboat. My favorite time of the year. Everything is turning green and there’s just a fresh clean smell in the air. I miss the skiing and snow and all but it’s biking, rafting and paddle board season.
- March 2019 Gross Volume. $39.1 million. Down 21% from 2018 // YTD Down 13%
- Transaction down 18% from last year / / YTD down 12%
- Total Listings Down (EVERYTHING SF, condo, land, commercial) continue to drop 999 today / compared to 2,200 in 2011. Inventory drops = price go up.
- What’s not dropping are pending sales. We have 184 Pending sales totaling over $153 Million (May 2018 we had 132)
- And your 2019 assessed value are not going down. In fact, I’ve heard from a lot of you already and I’m seeing a 25-35% increase in 2019 assessed values. So has your property increased 30% in one year? NO. But in the last 10 years, from 2009 -2019, the average appreciated for real estate has been about 4% per year. Now these assessment don’t change every year like a home does, so 30% in one year is high. Really high. And this doesn’t necessary mean your taxes are going up the same 30%. We won’t that for several months. Taxes are based on Actual value / assessment rate / mill levy. The mill levy is multiplier that fluctuates. So again, even though your assessed value went up a huge amount, doesn’t necessarily mean your real estate taxes are going through the roof. You can appeal the value of this new assessment by sending in, before June 1, comparable sales of like-kind properties that show your place is worth less than the assessed value. Send me an email if you need help with that.
So, what the market doing? Values are still going up but not as fast as they were in recent months. In fact, to give it some context, October 2013 we were seeing national home values appreciate around 13% per year. In Jan 2018, we were at around 6.3% Today were around the 3 to 4% appreciated per year. And that is a good thing. The market is moving closer to an equilibrium. Where were not seeing real estate value outpace inflation and salary growth. Which over last serval years we have seen this disparity.
When you think about it, it seems that long-term appreciation rates would have to be pretty close to the general rate of inflation. Because if appreciation were much higher than inflation, then it wouldn’t be too long before no one could afford to buy a house. If workers make 3% more each year on average, but the price of homes goes up by 6% per year, then pretty soon homes become widely unaffordable. I’ll be keeping this in mind as we go through the appreciation data below.
2009 -2019 inflation rate =1.95
2009 – 2019 appreciation rate = 4%
United States Wages and Salaries Growth = 4%
The market is moving closer to an equilibrium. A very good thing. We’re getting back to more moderate appreciation.
Change Your Experience
Real Estate Associate Broker | Sotheby’s
970-846-6435 | SteamboatsMyHome.com
610 Market Place Plaza, Steamboat Springs, CO 80487