By Lynn Hulsey

Staff Writer

Saturday, June 21, 2008

DAYTON - Kymberly Miller isn't surprised that nearly every home in her neighborhood dropped in value this year. After all, it wasn't long ago that she looked out the window at the dilapidated vacant house next door on South Torrence Street and saw a nude couple having sex on the back porch, not exactly a display that makes people clamor to live in a neighborhood.

But housing value declines are not limited to areas such as Miller's Lower Burkhardt neighborhood in East Dayton, where the average value of a house is $32,000, down from $41,000 last year.

Half of the residential parcels in Montgomery County dropped in value, according to Montgomery County's new six-year property reappraisal, which is awaiting final approval from the State Tax Commissioner.

"It is unprecedented," said county Auditor Karl Keith. "As long as I've been here we've never decreased values on tens of thousands of parcels before. Typically residential real estate values appreciate in value."

The total value of non-agricultural property in the county grew an anemic 1.7 percent. Residential property values increased by less than 0.42 percent, compared to a typical increase of 11 percent or 12 percent during a triennial update or sexennial reappraisal by the auditor, Keith said. The flat growth mirrors other counties across the state and reflects the impact of the growing economic crisis, including the slumping housing market, increasing numbers of foreclosures, a credit crunch and job losses.

"Economists are saying we haven't near hit bottom," Keith said. "It's far from over."

To the north in Butler Twp., the quiet cul-de-sac neighborhood of Cricket Woods features large houses and beautifully kept lawns. It's also a place where overall value declined and the average value of a house is now $194,000, down from $223,000.

Nine-year resident Dave Engle said the decline in value is troubling for folks whose primary asset often is their house.

"If you spend $20,000 on a kitchen or bathroom, which is easy to do, will you get your money back?" he said. "In this neighborhood, maybe not