Real Estate News 24

Real Estate News 24

City residential property values rise by 11.69%, commercial properties by 2.79% | Local Government

Beth McCandry

Homeowners in Charlottesville could increase their property taxes by 10 percent to 12 percent this year, based on new estimates for 2022 released Thursday by the City Assessor’s Office.

Home appraisals in Charlottesville rose an average of 11.69 percent in 2022, the Charlottesville City Assessor’s Office said Thursday in its 2022 real estate reappraisal. This average is based on valuations of 15,164 taxable residential properties.

“The key takeaway from this reassessment was the overall strength of the housing market. It’s reminiscent of the 2005-2006 market,” said City Assessor Jeff Davis. “A combination of low inventory, high demand and historically low interest rates has created a market where numerous properties have sold above asking price, including bids. Many properties have been sold in the market in less than five days.”

Almost all or 95.85% of home valuations increased in value, with 1.37% decreasing and 2.77% remaining flat.

Commercial real estate, including residential, retail, office, industrial, vacant land, gained an average of 2.79%. Adding new construction and rezoning to the value of existing property, the total value of property in the city increased by 10.77%.

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72.05% of commercial ratings have increased in value, 7.07% have decreased and 20.88% have not changed. The combined portfolio of residential and commercial properties increased by 7.94%. The new construction value included for 2022 is 2.86%.

Davis said that with the exception of housing, the commercial market has not fully recovered from the impact of the COVID-19 pandemic.

The appraisal office appraises property values ​​each year to determine a fair market price to which the tax rate is applied.

The city is divided into 55 residential and 21 commercial zones. Sales in those neighborhoods are compared to existing valuations to determine the scope of changes needed to reflect the current market, Davis said.

While individual taxes vary, the average homeowner could see an increase of between 10% and 12% if the tax rate stays the same, Davis said. The city’s property tax rate is 95 cents per $100 appraised value, lower than the state average of $1.04.

But that too could change. The city is discussing the possibility of a 10 cent increase in the property tax rate to fund the city’s school remodeling project.

The City Council will use the reassessment in determining a tax rate when funding city projects, programs and services in the fiscal year 2023 budget.

The reassessment notifications will be sent out on Friday. The City Assessor’s Office can be reached Monday through Friday from 8 a.m. to 5 p.m. at 434-970-3136. The office remains closed to the public due to COVID-19.