Homeowners in Harris County are seeing a shift in property value assessments this year, with nearly half of them experiencing drops, early appraisal data indicates. The Harris County Appraisal District (HCAD) has reported that roughly 48% of home values have decreased, while about 40% saw increases, and 13% remained unchanged. This comes as a stark contrast to the previous surge in property values that marked the area for the past two years, according to the Houston Chronicle.
Chief Appraiser Roland Altinger laid out the situation, noting that mortgage rates are nearly twice as high as 2020's, impacting market behavior as buyers are put off by the higher interest rates, the Houston Chronicle reports, the reasons behind this downturn are complex, but high mortgage rates have certainly thrown a wrench in the usual real estate market dynamics. "My job is to put market value on all of the 1.9 million (total real estate) parcels in Harris County," Altinger told the Houston Chronicle.
Meanwhile, the EIN Presswire recently released a comprehensive report showing how property values have soared over the last nine years. Despite the current slump, HCAD has seen property valuations grow from $379 billion in 2013 to a whopping $788 billion in 2022. This growth is notable even as it trails behind the statewide growth rate which hit 135%. Notably, Harris County's residential properties alone account for approximately 48% of the market value.
Commercial property values are not insulated from the market's response to interest rates either, as these too experience a downturn, these properties are sensitive to shifts in the 10-year Treasury rate, which has increased significantly over the past few years, complicating matters further for buyers and sellers alike trying to navigate an agreeable sales price, as reported by EIN Presswire. With this financial climate, homeowners are encouraged to look into any possible exemptions and appeal their property taxes, amid HCAD's assessment that over 400,000 disagreements are stirred annually over initial property valuations.
Even as the market adjusts to the new norm of higher interest rates, the community active in protesting valuations could see substantial tax relief. As per EIN Presswire, protests in Harris County led to a $719 million reduction in property taxes and a $43.08 billion decrease in assessed values. With the power to influence local government revenues and the real estate market at large, these figures underscore the homeowner's stake in staying informed and involved in the property tax evaluation process.
