Johnson County appraisals are out this week and almost every homeowner can expect another increase
Key points to remember
• More than 97% of Johnson County homeowners will see their annual appraised value increase this year, according to the county assessor.
• The strongest area of property value growth is around Spring Hill, with an average increase of about 20% over the past year. The slowest growing area is in the northeast corner of the county.
• Johnson County homeowners are expected to begin receiving their assessment notices in the mail this week. You have until March 30 to appeal the appraised value of your home.
Homes and apartments are still hot commodities in Johnson County this year, and this fiery market will drive property values up for the vast majority of homeowners, according to the revaluation report released last week by the appraiser. Beau Boisvert county to the county commission.
Some 97.5% of homeowners will see an increase in the value the county sets for property tax purposes when the notices arrive in the mail this week.
Increases will vary, but the overall average for the county is 11%, he said. Only 2.4% of goods will lose value.
Property values are the basis for future taxes. However, they can be appealed. The new assessments will be mailed out on Monday and residents have until March 30 to appeal.
The county commission does not control the assessments but will set the tax rate as part of the county budget.
Although real estate experts have been predicting a spike in home prices for several years, Boisvert told the commission Thursday that the market is still exceptionally strong for sellers.
That may be because construction hasn’t kept up, he said. There was only a 1.09% increase in residential construction over the past seven years, he added.
“The problem we have is that there is no inventory so there are four, five, six, seven buyers for every house that comes on the market. It becomes a bidding war,” he said. “Even coming out of COVID, people want to be here (in Johnson County) because of what we have to offer.”
Here are some key points from Boisvert’s presentation:
- The area with the greatest average increase is in the southern part of the county around Spring Hill, with an average of about 20%. Boisvert said that increase may sound bad, but residents should know that Spring Hill started with the second-lowest starting point in the county. “Even though the actual percentage looks scary, it’s actually not that bad when you break it down into dollars,” he said.
- The northeast part of the county, which has historically seen strong increases, saw some of the smallest increases in value this year. Boisvert compared it to the ripples of throwing a stone into a pond. “Usually the biggest effect is where the rock hits the water. For many years the northeast was the center of the rock hits,” he said. Now the biggest effects spill over to other parts of the county.
- A significant gap still exists between the sale prices of new and existing homes. New homes averaged $610,000, while existing homes averaged $426,000.
Other notable sectors
- Apartments: “Just a hot commodity. People want to live here, but they can’t afford the houses, so they’re doing luxury apartments,” Boisvert said. About 1,100 units have been added this year and 9,714 are on offer at this day.
- Office space: “A mixed bag”, by Boisvert. There has been positive growth overall, but uncertainty remains about how many workers will return to the office and how often. Just 81,900 square feet of retail space was built in 2021, the lowest in seven years.
- Commercial: Some 86.4% of tertiary assets will see their value increase, with an average increase of 4.3%, excluding new construction. “It’s a good sign that even though we’re coming out of COVID, we’re also starting to see some activity in the commercial realm,” Boisvert said. Last year, trade values fell 0.53%.
- Retail: Also a mixed bag, Boisvert said. But 208,801 square feet of retail space was built (and remodeled) last year, which is a nice increase, he said.
- Industrial: Warehouse construction has grown due to the popularity of online shopping, he said. Construction trends show less warehouse space construction than during the peak years of 2015 to 2018, when crews were building 4 to 5 million square feet per year. In 2021, approximately 2.1 million square feet of industrial space has been built.
- Hotels: Struggling and possibly at the start of a contraction period, according to Boisvert. No hotel space was built in the last year, an indication of the challenge. Boisvert added that hotels have been around 60-70% occupancy when 80-90% is needed on a regular basis. However, some have used the downtime to close floors and renovate.