REAL ESTATE April to bring unprecedented spikes in area home valuations
SKYROCKETING SALES PRICES From January 2021 to January 2022, the median sales price of homes sold across Williamson County, a factor in determining appraisal values, dramatically increased.
ROUND ROCK Jan. 2021 Jan. 2022
BY CLAIRE SHOOP
current real estate conditions—an ecosystem consisting of low inven- tory coupled with high demand has continued to drive prices up. “The concern we have as Realtors is if we continue to have a low num- ber of new active listings, but also increasing demand, thenwe are going to see steep increases again in valua- tions,” said Realtor Drew Griffin, who works primarily in Round Rock and the surrounding communities. In January, the median price of a home sold in Williamson County was $460,000, up 42.53% from the median sales price in January 2021, according to data from the Austin Board of Realtors. Additionally, home prices in Round Rock mirrored the increases with the median price ris- ing by more than $100,000 or 42.39% to $440,000 over the same period. These steep increases in home sales prices and subsequently prop- erty values could affect homeowners’
$309,000 $440,000
42.39%
Williamson County residents can expect record increases this year in their home property values, accord- ing to Alvin Lankford, chief appraiser for the Williamson Central Appraisal District. Lankford said these increases— which could be as high as 40% in some neighborhoods—are directly tied to the housing market, which has been hot in the Austin area for several years. Residents should receive their appraisals, which aim to show a home’s value as of Jan. 1, via mail in mid-April. “What people don’t realize is that we are a mere reflection of the mar- ket sales transactions that happen in Williamson County,” Lankford said. “Our job is to appraise at the market level that we are seeing.” Williamson County real estate pro- fessionals said these property value increases are not surprising given
WILLIAMSON COUNTY Jan. 2021 $322,750
42.53%
Jan. 2022
$460,000
SOURCE: AUSTIN BOARD OF REALTORS/COMMUNITY IMPACT NEWSPAPER
“WE SAWAPRETTY SIGNIFICANT INCREASE FOR 2020 INTO 2021, ANDWE’VE SEENAMUCH LARGER INCREASE DOUBLING THAT FROM2021 2022. IT’S UNPRECEDENTED, TO SAY THE LEAST.” ALVIN LANKFORD, CHIEF APPRAISER, WILLIAMSON CENTRAL APPRAISAL DISTRICT
from property tax increases to 3.5% without needing voter approval, according to the Texas Association of Counties. A 2.5% cap was also imple- mented for school districts. Therefore, Lankford said if the taxable value of homes in a jurisdic- tion increases by 10%, the property tax rate will have to decrease so that total revenue does not exceed these limits. Despite these caps, Griffin said 10% increases in the taxable value of a property adds up over time. ABoR President Cord Shiflet said tax rates and potential property tax bill payments are something buyers are taking into account when decid- ing where and whether they are able to purchase a home. “Added expenses of property taxes can price someone out of an area,” Shiflet said in an email. “It is import- ant to work with a Realtor that can help you understand that your hous- ing payment isn’t just principal and interest; it’s those things plus insur- ance, taxes, potentially mortgage insurance, any [HOA] fees and more.” Market conditions Williamson County has seen an influx of technology jobs, with Apple planning to move the first phase of employees into its new $1 bil- lion campus in 2022 and Samsung announcing a $17 billion facility in eastern Williamson County. Additionally, Keller Williams Real- tor Kiersty Lombar said demand for houses in Williamson County has also been driven by the relative
property taxes for the coming year, experts said. However, Lankford said the increase in what a person owes in property taxes is unlikely to be proportional to the increase in home value due to the homestead exemp- tion and caps on how much revenue a taxing entity can make from prop- erty taxes in a year. Residential rami cations According to WCAD data, prop- erty valuations increased between 1%-7% in Williamson County in the five years prior to 2021. Then, in 2021, home values rose more than 17% on average—the largest increase to date. “We saw a pretty significant increase for 2020 into 2021, and we’ve seen a much larger increase— doubling that—from 2021 to 2022,” Lankford said. “It’s unprecedented, to say the least.” Despite increases in property tax appraisals expected to rise by 40% in some areas, the homestead exemp- tion caps the amount a property’s taxable value can increase in a year at 10%, according to the WCAD. To qualify for the homestead exemp- tion, the property must be a person’s primary place of residency, according to the state. Additionally, property values are only one factor in the tax formula. The other is property tax rates, which are set by taxing entities, including school districts, cities and coun- ties, during their annual budgeting process. A 2019 Texas law capped the rev- enue counties and cities can make
BREAKING DOWNAN APPRAISAL NOTICE
This value, also known as the appraised value, represents the market value of the house as of Jan. 1 of the current year. This number may change as much as necessary to reflect changes in the housing market. TOTAL MARKET VALUE: This is the value of the home that will be taxed. For residents who qualify and have filed for the homestead exemption, this number is capped at growing no more than 10% from year to year, no matter how much the market value increases. ASSESSED VALUE (OR HOMESTEAD CAP VALUE): For the first time this year, the second page of the appraisal notice from Williamson Central Appraisal District will include five comparables, or recent home sales that were used to determine the market value of the property. COMPARABLE SALES: Property owners may qualify for the general homestead exemption and homestead cap if the property is their primary residence. WHOQUALIFIES FOR THE HOMESTEAD EXEMPTION?
SOURCE: WILLIAMSON CENTRAL APPRAISAL DISTRICT/COMMUNITY IMPACT NEWSPAPER
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COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
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