January 16, 2009

Local Home Values Increase Despite Poor Market

NASHVILLE, Tenn. - The Metro property assessor is about to send out the 2009 property values, and he said it will be a double-digit increase over the last assessment.

The plunging housing market of 2008 will not affect home value reassessment in Davidson County -- the prices are still going up.
Assessor George Rooker Jr. said the last property tax assessment was in 2005, and this property tax assessment tries to figure out what your house is worth on Jan. 1, 2009.
"We believe that the average homeowner will probably see an increase in value of somewhere between 10 and 15 percent," said Rooker.
Rooker said the assessments compared to sales prices are good, and even sinking 2008 is 12 percent above 2005.
"It's a 4-year-old equation, and it's easy to let current circumstances allow us to forget that we had some very, very good years," he said.
But Metro councilman and veteran real estate agent Mike Craddock doesn't see it. He sees houses just not selling anywhere near their assessed value.
"I think they'll go nuts, because I don't see how on earth the assessments can go up," said Craddock.
Craddock said the average home in Nashville in January of 2008 sold for $221,000. One year later, the average home is selling for $196,437 -- down 11.2 percent in one year and still dropping.
Even Rooker realizes there could be trouble, especially with the average home losing value at 1 percent per month.
"People will probably be frustrated when they receive their appraisal," said Rooker.
The office is bracing for appeals. There were a lot of appeals in 2005 because of the rising market.
Your property value will be mailed to you sometime in March. The property tax rate won't be finalized until the summer.

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