Assessed Values up Record 7.4 Percent in Madison, Wis.
A growing economy and high buyer demand have pushed up Madison, Wis., home values to a record high, reports the Wisconsin State Journal. Newly released property assessments show a rise in real estate values of 7.4 percent overall in 2018, with 5.8 percent growth for single-family homes to $284,868.
Fifth straight increase for single-family homes
“We’re definitely several years past the assessments of the recession,” Mark Hanson, city assessor, told reporters. Real estate values have reportedly been on the rise for several years. It was reportedly the fifth straight increase for single-family home values. Residential values, including single-family and multifamily dwellings, rose 6.8 percent, a slightly higher rate than last year. Commercial values were up 8.5 percent this year, and 12.9 percent last year, due to hotel property reassessments and new apartment construction.
Economic boom means new construction and higher values
The article reports that more new construction is underway in the growing economy, a crucial factor for tax assessments and municipal budgets. Wisconsin state law reportedly restricts increases in tax collections by tying them to net growth – that is, the value of new commercial developments, additions and home remodels less the value of any demolished properties. Consequently, the 7.4 percent rise in assessments had much to do with $604.3 million in new construction, versus $1.24 billion in revaluations.
Some buyers bidding up popular price points
Home values are also experiencing pressure from increased demand, with certain market segments bidding up prices to win the sale. “There’s a lot of demand for houses in the $200,000 to $250,000 range,” the city assessor said. “There are certain price ranges where the inventory is historically low. People just continue to bid up prices, often paying above the list [price].”
The article reports it’s still too early to say for certain how new assessment values will affect individual tax bills. More will be known in the fall when the City Council approves a budget for 2019.