Cypress Edition | July 2024

Real estate

BY MELISSA ENAJE CONTRIBUTIONS BY DANICA LLOYD

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

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 ocials 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 consecutive years 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 Cy-Fair, home values increased by 0.84% on average.

SOURCES: HARRIS CENTRAL APPRAISAL DISTRICT, HOUSTON ASSOCIATION OF REALTORSCOMMUNITY IMPACT

Average local market values on Jan. 1

Homes sold Jan. 1, 2023-Jan. 31, 2024

1 Far northwest

4 South of Hwy. 290

$386,942 $393,211

$345,694

2023 2024

+1.62%

+5.56%

249

$364,921

1,927

425

1960

290

2 Far west

5 Inside Beltway 8

$409,429

$263,509 $270,107

2023 2024

+2.38%

+2.5%

$419,181

2,698

308

529

3 Southwest

6 Outside Beltway 8

$283,524 $272,699

$310,890 $300,965

2023 2024

99 TOLL

-3.82%

-3.19%

1,185

413

SOURCE: HARRIS CENTRAL APPRAISAL DISTRICTCOMMUNITY 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 eect retroactively for 2023 tax bills, and Bettencourt’s o ce estimated the average Texas 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 le a protest against a home value was May 15, or within 30 days of receiving a property value notice being mailed. However, county ocials 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 SOURCES: HARRIS COUNTY TAX ASSESSORCOLLECTOR & VOTER REGISTRARCOMMUNITY 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 DISTRICTCOMMUNITY IMPACT

SOURCE: SENATE BILL 2COMMUNITY IMPACT

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