In early May, Summit County homeowners should have received an Assessment Notice from Summit County indicating what their home was assessed for in the last reassessment cycle.
Some homeowners may have been shocked to see their valuation increase. According to a press release across the county, the median percentage change in residential property values ââacross the county, including single-family homes, duplexes and townhouses, was about 10.69% on average. Condos increased by approximately 11.47% on average.
Unsurprisingly, it has a lot to do with the boom in the local real estate market, but not as much as residents might think.
All residential properties in Summit County are valued using the Market Approach Valuation. Summit County Appraiser Frank Celico said that means the county uses the sales of certain properties to determine the value of all properties between a certain period of time. For the 2021 assessment, this data collection period ran from July 1, 2015 to June 30, 2020, when the housing boom was just starting to take off locally.
âHonestly, what has happened since that date of June 30, 2020 has been a really explosive number of sales,â Celico said. “It’s really boomingâ¦ since about the date.”
So what does this mean for the next reassessment round? Celico said it’s very likely that homeowners could see an even bigger increase in their property valuations next time around, especially if the current housing boom continues.
âThe sales we’ve seen since then will be reflected in the 2023 values ââas they are part of this data period,â Celico said. “And so it bodes well if this trend continues for (if there will be) significant increases in 2023.”
Celico said owners could expect even bigger increases than this year and most likely numbers similar to the increases seen in 2019.
âIf you look at what happened in 2019, it was (up) 21% for single-family homes and almost 30% (up) for value condominiums. â¦ It was two years ago. I wouldn’t be at all surprised if we saw increases of this nature in 2023, but it’s entirely speculative, âCelico said. “On the one hand, there is precedent for seeing this kind of growth in values.”
Mike Peterson, senior data analyst for the Summit County Assessor’s Office, said the state performs its reassessment process every two years to keep market values ââconsistent with assessed values. This means that the current real estate boom the county is currently experiencing will not be fully realized until 2023.
While some homeowners might view the rise in property valuations as worrying for their portfolios, others, such as owner Katie Schweitzer, have said she feels optimistic about the current position of the property market.
Schweitzer bought his one-bedroom condo in Summit Cove for $ 345,000 in August. She said her home had been completely renovated and recently learned that another unit similar to hers – which had not been renovated – had recently sold for $ 450,000. Schweitzer said that’s what she’s focusing on right now, the possibility of what the return on her investment might be, and not so much property taxes.
âI’m not very worried about this, but I think it makes sense to carefully manage the numbers between professionals who can advise you,â Schweitzer said.
Although valuations could rise further, Peterson said that doesn’t necessarily mean property taxes are rising at about the same rate.
âOne of the biggest things we have to stress here is that even if you have a change in your value, it may not result in the same increase in your property taxes because the value is only part of the way which you calculate your property tax, âPeterson said.
Peterson said other factors, such as appraisal rates and appraisal values, must also be factored into the equation. For more information on how property taxes are calculated, visit the County Assessor website.