Auditor Keith predicts uneven recovery
FOR IMMEDIATE RELEASE
Date: December 15, 2016
Contact: Mike Brill
Montgomery County Auditor Karl Keith addressed local government officials with guarded optimism at his annual update on Thursday, December 15 as he spoke about what he calls an ‘uneven recovery’ in the county real estate market.
Speaking to a room of more than 80 local officials, Keith said Montgomery County as a whole could see 3-5 percent increase in residential property values in 2017. Keith said this forecast is based on a total of nearly 17,000 valid real estate sales in Montgomery County from 2014-2016, which was a nearly 50 percent increase in sales from the previous three-year cycle.
This preliminary data shows the local real estate economy improving and is indicative of growth in the county, according to Keith. However, that growth has manifested itself differently in various areas. Some jurisdictions will see significant increases in property values, while others will see more modest, if any, increases.
“The real estate market is improving as the local economy rebounds from the Great Recession, said Keith. “This is an uneven recovery, though, so homeowners in one area may see a smaller value increase than those in another area.”
Keith’s office will be updating property values countywide in 2017 as part of the county’s triennial update. This update is based on sales trends from the previous three years. Values were last updated in 2014 when properties were canvassed as part of the sexennial revaluation.
Analyzing preliminary sales ratio data obtained from the Ohio Department of Taxation, Keith predicts property owners in the southern suburbs and rural western areas of the county will experience greater value increases in 2017 than those in the central core and northern suburbs.
As an example, Keith said the southern suburbs of Kettering, Miamisburg, Oakwood, Miami Twp. and Washington Twp. accounted for nearly half of the county’s total valid real estate sales in 2015. The average purchase price on those sales were as much as 10 percent below the county’s current value on those properties, indicating a need for an increase. Some of the purchase prices in other areas of the county were not as robust.
Since the changes in each of the more than 1200 neighborhoods in the county are based off sales factors in each specific neighborhood, the amount of value change will vary by community and by neighborhood within each community, warns Keith.
“I host my annual update to make sure local government officials have the information they need to make informed decisions for the citizens they serve.” said Keith. “I hope local governments and property owners alike are able to plan for the future using the data I have provided.”
In other updates, Keith announced the deadline for the Homestead Exemption program had been extended to December 31. The Homestead Exemption provides homeowners age 65 or older, or those permanently and totally disabled, a property tax credit on their annual real estate tax bill. Montgomery County residents who believe they may be eligible should call the Auditor’s Homestead Hotline at 937-225-4341.
Demonstratives of real estate sales and new construction in Montgomery County are attached.