Andy Sentgeorge

Homes prices down, Land prices up

According to Sougata Mukerjee of the Triangle Business Journal:

“The county is expected to generate about $33 million in new revenue from properties, most of which will come from new homes built across Raleigh, Cary, Apex and other locales.”

Well if that isn’t some great local news I don’t know what is! Apparently this newfound revenue is a result of recent property tax adjustments by Wake County. County administrators turned to SAS (a local tech juggernaut with global reach) for help. SAS created Viya, a machine-learning system that analyzed hundreds of factors in this process, which generated these new property valuations for the county. I guess the Zestimates couldn’t be trusted anymore…

From the TBJ:

“We heard about a home in North Hills that had a 10 percent depreciation in the building value but a 30 percent increase in land value. We also heard about an Inside the Beltline home that fell almost 40 percent in building value but doubled in land value. I’m pretty sure many of the 1.1 million people residing in the county had similar questions.”

Have your property taxes gone up this year? Did they go up significantly? I’d like to hear about it.

This is a complex subject for sure. Is the problem with the increase, or is it the new methodology used to recalculate? It’s easy to get outraged about an issue when it comes at you out of left field. The fact is, we only know what we have been paying and so we assume that the current calculations are equitable and logical. But are they? One thing I know – our taxes are a big reason that people move here from allllll over.

I think it is important to remember that this area is growing, and growth is good. Not growth in a tumor sort of way, or a tween-to-teen sort of way, but in an way that attracts people because it was done smartly and sustainably and openly. I think you’ll agree that Wake County is a great place to grow in. After all, you’re growing here, right?

So how is this going to affect the local real estate market? We’ll continue to watch this topic for our clients. To be honest though, if you are thinking about a real estate transaction this year, you’d better find a professional agent that has some knowledge and experience. A firm like MORE Real Estate Group for instance. We’d be happy to talk to you about your plans!