Drop in Williamson County home market values offset by rises in multifamily values
The chief appraiser for the Williamson Central Appraisal District told county commissioners this month that the median market value of a home in the county fell about 12% in 2022. He said the decrease in residential values, which was seen throughout Central Texas, was offset by an increase in market values for commercial and multifamily properties.
Here's what we know:
Why did Williamson County residential market values fall?
Chief Appraiser Alvin Lankford said the decrease was due to rising interest rates, which led to more homes on the market and houses staying on the market longer before they sold. The median market value of a home in Williamson County, or the amount that the county thinks a home would sell for, fell from $473,328 in 2021 to $414,869 in 2022, Lankford said.
What is the total market value of property in Williamson County in 2022 compared with 2021?
The total market value of all properties in the county increased from $159.5 billion in 2021 to $164.9 billion in 2022, according to information presented by Lankford. The value is made up of residential, multifamily and commercial properties as well as land values. It includes residential market values, which decreased from $102.8 billion in 2021 to $96.2 billion in 2022. Commercial market values increased from $16.9 billion in 2021 to $21.8 billion in 2022. Multifamily (apartment) market values increased from $10.6 billion in 2021 to $13.9 billion in 2022. Land values also rose from $13.4 billion in 2021 to $14.9 billion in 2022.
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Why didn't the market value of commercial and multifamily property decrease?
The market values of commercial and multifamily property usually don't decrease until a year or two after residential value decreases, Lankford said. He said, however, that he doesn't believe the commercial and multifamily property will decrease because of growth in the area.
How did the total taxable value of county property change from 2021 to 2022?
The total taxable value of property in Williamson County increased by $18.45 billion from 2021 to 2022, Lankford said. The total taxable value in 2022 is $126 billion, including $6.5 billion in new improvements, he said. The taxable value is the amount that property tax is based on.
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Does the decrease in market values for homes mean property taxes for homeowners will go down?
Whether property taxes for homeowners will decrease depends on the assessed value and the tax rate. The market value is the price at which a house would sell in an open market. Property taxes are based on the assessed value, which is determined by the county appraisal district. Under state law, the assessed value of an existing home with a homestead exemption can't increase more than 10% per year. The amount of taxes homeowners would pay could increase or decrease depending on the tax rate set by various taxing entities, such as the county, local school districts and cities.
This article originally appeared on Austin American-Statesman: Drop in market value of Williamson County homes mirrors Central Texas
