Montgomery County’s real estate market has been “off the charts”, according to County Auditor Karl Keith, and now property values are catching up. Keith announced the tentative results of his office’s 2023 Property Value Update on Thursday, July 13, showing the county has gained $8.5 billion in property value – its largest increase in history. With this rise, the county’s total property value is expected to top $40 billion for the first time.
This growth represents a 34% aggregate increase in residential and a 12% aggregate increase in commercial property values. Overall, Montgomery County will see a record-setting 30% property value increase. The value increases are based on recent activity in the real estate market.
“Over the past few years, we have witnessed the strongest real estate market in history. Home prices have been off the charts here in Montgomery County,” said Keith. “Now, our property values are catching up.”
Since the county’s last reappraisal in 2020, it has seen a record-high 32,300 valid residential sales. Home prices have skyrocketed during those years. Of the 10,500 residential properties that sold in Montgomery County in 2022, more than 83% went for a price higher than the county’s current value.
The hot housing market can be seen across the state and the country, according to Keith. Montgomery County is not alone this year in its record-setting value increases. Residential property owners in neighboring Greene and Darke Counties will see average increases of 29% and 28%, respectively. In Franklin County, residential property values will increase 41% on average this year.
During this year’s “triennial” update, Keith’s office will adjust property values by neighborhood by analyzing 2022 sales prices in each neighborhood. In total, nearly 96% of residential properties in the county will increase in value.
While some property owners can expect a modest increase in their property tax bill due to these gains in value, Keith emphasized that taxes will not rise at nearly the same rate as values.
“You should know that a 34% increase in your property’s value will not result in a 34% increase in your taxes,” said Keith.
The tax impact of the new values will vary from property to property, but the Auditor’s Office estimates that taxes will increase about 4-6% on average due to the rise in values. They say the owner of a $100,000 home will see about a $104 annual increase in their property taxes, on average, due to a 34% increase in value.
The value changes announced on July 13 have been approved by the Department of Taxation, but there is still time to make adjustments. Keith’s office will send notices of the tentative new values to most property owners in late July or early August. If a property owner disagrees with that tentative new value, they will have the opportunity to schedule a one-on-one Zoom or telephone meeting with an auditor’s office representative to review their property’s value in detail. Property owners can find more information about Montgomery County’s 2023 property value update at www.mcreval.org.
Keith will release the community-by-community results of the property value update at a briefing with local government officials on Thursday, July 27 at Sinclair Community College. The media will be invited to attend this meeting.