Heights - River Oaks - Montrose Edition | July 2024

Real estate

BY MELISSA ENAJE

Property value growth slows

Harris County trends

Total single-family homes sold

Median price of homes sold

Months’ supply of homes

95,302

$338,000 $330,000

1.3

2022 2023

2022 2023

Jan. 2022 Jan. 2023 Jan. 2024

2.6

83,854

3.3

More Harris County homeowners saw drops or smaller increases in property values compared to the past two years, according to values determined by the Harris Central Appraisal District as of Jan. 1, 2024. HCAD officials attributed the trend to increasing home inventories and fewer home sales. HCAD Chief Appraiser Roland Altinger said in a news release the Harris County housing market took a “breather this year” after several years in a row of rapid appreciation. Sales slowed in 2023, and prices rose slightly because of higher interest rates and mortgage rates, which Altinger said allowed home inventory to inch upward. “This year we are seeing a return to the usual increases and decreases in property values instead of the extraordinary growth of the past two years,” Altinger said. Residential properties have gone up an average of about 2.5% in value countywide when comparing values from Jan. 1, 2024, with those from Jan. 1, 2023, Altinger said. In submarkets covering the the Heights-River Oaks-Montrose area, values rose between 2% and 8% on average.

SOURCES: HARRIS CENTRAL APPRAISAL DISTRICT, HOUSTON ASSOCIATION OF REALTORS/COMMUNITY IMPACT

Average home market value on Jan. 1

3%-5%

More than 5%

0%-2.9%

2 Lazybrook, Timbergrove, Shady Acres, Washington Corridor 1 River Oaks, Glencove, Crestwood 2023: $3,429,622.38 2024: $3,709,512.10 +8.2%

610

290

45

3

2

2023: $522,462.17 2024: $550,949.69

+5.5%

59

3 Heights, Studemont, Brooksmith, Norhill 2023: $751,278.26 2024: $781,123.63 +4%

10

5 Mandell, University of St. Thomas, Montrose, Old Fourth Ward 4 Afton Oaks, Highland Village, Weslayan, Greenway 2023: $1,063,435.21 2024: $1,106,257.98 +4%

1

5

610

4

45

69

288

2023: $641,165.21 2024: $654,063.10

+2%

N

SOURCE: HARRIS COUNTY APPRAISAL DISTRICT/COMMUNITY IMPACT

Zooming in

What residents should know

What’s next

In addition to the slowdown in property value increases, one 2023 change in state law also lowered property tax rates for school districts. The changes came after Texas vot- ers approved Proposition 4 in the November 2023 election. Proposition 4 was placed on ballots fol- lowing the passage of Senate Bill 2, authored by State Sen. Paul Bettencourt, R-Houston, during the 2023 Texas Legislature. The changes went into effect retroactively for 2023 tax bills, and Bettencourt’s office estimated the average Texan homeowner’s tax bill was lowered by $1,260 that year. Following the passage of Proposition 4: The state of Texas set aside $12.7B for school districts to allow them to lower tax rates by 10.7 cents per $100 of valuation. $5.6B went toward increasing the statewide homestead exemption from $40,000 to $100,000.

The deadline for homeowners to apply for property tax exemptions passed April 30. Meanwhile, the deadline to file a protest against a home value was May 15, or within 30 days of receiving a property value notice being mailed. However, county officials said property owners should take note of several other upcoming dates related to when tax rates are set and when bills will be mailed out.

Data by price range Harris County homes in the lower price ranges were more likely to see value decreases when comparing Jan. 1 data to the previous year. 57.5% decreased in value 28.8% increased in value 13.6% saw minimal change in value For homes valued between $200,000-$299,999: 34.1% decreased in value 58.1% increased in value 7.8% saw minimal change in value For homes valued between $450,000-$749,999: 52.7% decreased in value 37.4% increased in value 9.9% saw minimal change in value For homes valued between $300,000-$449,999:

August-October: Local jurisdictions adopt tax rates October/November: Tax bills are mailed Dec. 31: Last day to pay to use a deduction for the same year’s federal income tax

21.1% decreased in value 73.4% increased in value 5.5% saw minimal change in value For homes valued at $750,000 and over:

SOURCES: HARRIS COUNTY TAX-ASSESSOR COLLECTOR, HARRIS COUNTY VOTER REGISTRAR OFFICE/COMMUNITY IMPACT

SOURCE: HARRIS CENTRAL APPRAISAL DISTRICT/COMMUNITY IMPACT

SOURCE: SENATE BILL 2/COMMUNITY IMPACT

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HEIGHTS - RIVER OAKS - MONTROSE EDITION

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