Posted 6:18 am Friday, May 02, 2008
Smith County Still Defies Trend; Home Values Keep Rising
By ROY MAYNARD
Staff Writer
Appraisal notices being mailed today show that Smith County continues to defy nationwide trends of declining home values, Chief Appraiser Mike Barnett says.
Staff Writer
Appraisal notices being mailed today show that Smith County continues to defy nationwide trends of declining home values, Chief Appraiser Mike Barnett says.
The Smith County Appraisal District is mailing about 40,000 notices for properties whose values have increased by $1,000 or more or have new owners.
Although home prices are down nationwide — an estimated 15 percent since July 2006 — values in Smith County continue to increase, Barnett says.
“The Tyler/Smith County market has not shown the volatility that is being expressed elsewhere in the nation,” he says.
The most recent figures from the Office of Federal Housing Enterprise Oversight show a gain of about 4 percent in residential values in the Tyler area for 2007. The appraisal district has not yet calculated average home values for local taxing entities.
“Keep in mind that some neighborhoods will show greater appreciation than others,” Barnett says. “The old adage, ‘location, location, location’ still holds true today.”
Smith County’s taxable values rose from $12.5 billion for 2007 to almost $13.3 billion for 2008, according to the appraisal district. That’s an increase of 6 percent. Of that figure, $338.18 million was new construction. Last year’s increase was 9.7 percent.
The city of Tyler saw a slightly bigger percentage appreciation in values, from $6.14 billion for 2007 to $6.56 billion for 2008, an increase of 6.9 percent. Of that increase, $148.96 million was in new construction.
“The volume of new construction is indicative of a very robust commercial market in Smith County,” Barnett said. “Though new construction totals are not as high as in the previous year, they still show tremendous growth.”
The highest percentage increases in taxable values were seen in Bullard. The city saw an increase of 12.6 percent, going from $118.26 million for 2007 to $133.22 million for 2008, with $8.01 million in new construction.
Bullard ISD had an increase of 13.7 percent, going from $472.2 million for 2007 to $537.04 million for 2008. Of that, $23.09 million was new construction.
Barnett attributes the increases to vigorous growth and reappraisals.
Two entities saw decreases in taxable values, however. Arp ISD shows a 5 percent loss in its tax base, going from $427.35 million for 2007 to $405.34 million for 2008 (it also saw $7.56 million in new construction).
Barnett says that’s due to a 14 percent reduction in mineral values — natural gas prices falling slightly since last year, which shortens the economic life of a reserve. But that reduction may be overstated, he added, because there are still some leases to be incorporated.
The city of Troup saw a decline of 2.7 percent, going from $69.5 million for 2007 to $67.6 million for 2008. The city had new construction added to the tax rolls totaling just more than $1 million.
“That’s also because of minerals,” Barnett said.
The valuations “represent market value as of Jan. 1,” Barnett notes.
“There is considerable concern that home values may drop this year,” he says. “We are obviously watching closely so that next year’s notices will reflect market trends.”
Appraisal Review Board hearings for residents who wish to protest their property appraisals will begin June 2. Barnett expects to have a certified appraisal roll by mid-July.
For more information, or to begin the process of protesting an appraisal increase, contact the Smith County Appraisal District at 903-510-8600.
