Despite signs that the local real estate market is improving, property values in MontgomeryCounty will most likely drop again when the county completes its next revaluation according to County Auditor Karl Keith.
Keith told 75 local government officials gathered in Dayton for his Annual Update on December 13th that overall property values in the county would decline between five and seven percent when the next revaluation is completed in 2014 if current trends in the market continue. Property values in the county fell by seven percent following the last update in 2011 resulting in a loss of more than $2 billion to the county’s tax base.
“The local real estate market certainly has improved in terms of activity,” Keith said. “The number of valid sales during the third quarter of 2012 increased twenty-five percent over the previous year. But, the market continues to struggle after the nationwide housing crisis in terms of price.”
Keith said that 62% of the residential real estate transactions reviewed by his office since January 2011 have sold below the county’s current assessed valuation.
The Auditor indicated that aging housing stock, functional obsolescence and blight from vacant and abandoned properties are some of the factors having an adverse effect on values in many neighborhoods.
“Blighted properties drag down the value of neighboring homes,” Keith said. “Every day a property is left vacant or abandoned it lowers the value of surrounding properties.”
Additional information regarding the county’s 2014 Revaluation Project is available on the county’s website at www.mcreval.org.