Real estate
BY MELISSA ENAJE CONTRIBUTIONS BY HANNAH BROL
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 in 2023 compared to the past two years as officials with the Harris Central Appraisal District said increasing home inventories and fewer home sales have slowed growth. 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 are still in high demand and have gone up an average of about 2.5% in value countywide from 2022 to 2023, Altinger said. In the Lake Houston area, home values saw the largest increase in Kingwood, according to HCAD data.
SOURCES: HARRIS CENTRAL APPRAISAL DISTRICT, HOUSTON ASSOCIATION OF REALTORS/COMMUNITY IMPACT
Average local market values on Jan. 1
Home sales Jan. 1, 2023-Jan. 31, 2024
In Humble ISD
1 Kingwood Area (North of San Jacinto River)
$366,644.75
2023 2024
+5.17%
$386,315.56
932
2 Airport Tier Areas South of San Jacinto River, West of Woodland Hills
1
59
$373,244.26 $370,819.15
2023 2024
-0.78%
1,389
1960
3 Outside Airport Tiers South of San Jacinto River (Atascocita Area)
2
LAKE HOUSTON
3
2023 2024
$281,050.80 $284,893.97
+0.75%
N
679
SOURCE: HARRIS CENTRAL 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 between 2022 and 2023. 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 SOURCES: HARRIS COUNTY TAX-ASSESSOR COLLECTOR, HARRIS COUNTY VOTER REGISTRAR OFFICE/ COMMUNITY IMPACT
21.1% decreased in value 73.4% increased in value 5.5% saw minimal change in value For homes valued over $750,000:
SOURCE: HARRIS CENTRAL APPRAISAL DISTRICT/COMMUNITY IMPACT
SOURCE: SENATE BILL 2/COMMUNITY IMPACT
9
LAKE HOUSTON - HUMBLE - KINGWOOD EDITION
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