Cobb home prices continue to rise as tax assessor projects digest growth of 13%

Apr. 7—In a sign that Cobb County home prices continue to rise, the county's chief appraiser is projecting that this year's tax digest will grow by 13%, outstripping last year's 12.3% increase.

The continued increase means many homeowners will see their property values — and taxes — increase.

The Cobb Tax Assessor's Office releases its digest growth projection annually at the end of March. Chief Assessor Stephen White said that all three property classes that make up the tax digest — residential, commercial and personal property — are seeing growth.

As a result, White projects that the total taxable value of residential, commercial and personal property in Cobb increased by $6.4 billion between Jan. 1, 2022, and Jan. 1, 2023.

This year's digest, which examines the value of all properties in the county on Jan. 1, 2022, is expected to maintain the sort of growth seen last year, when the digest increased by double digits for the first time in more than two decades.

The growth means an increase in tax revenue for Cobb County, its cities, its school districts and its community improvement districts, assuming their millage rates hold steady or increase.

"I think that people are pleased that they are seeing their No. 1 asset in Cobb County increase, that's certainly a great feature of a strong real estate market," White said in a county video.

The digest is calculated annually by the Board of Tax Assessors, which releases preliminary numbers each March and final numbers in June.

"We take a look at all the sales activity that occurred in each and every property that's sold throughout the calendar year. All real estate markets are local. Each subdivision is going to perform and act differently from one another, depending on where it's at — location, location, location ... The age of the home, the size of the home, all these factors," White said.

The county is legally required to reassess properties annually and ensure they are being assessed at fair market value.

White's office will start mailing out assessment notices May 11.

From 2021 to 2022, the average residential sales price in the county increased by 13%, from about $401,000 to $453,000, per the Tax Assessor's Office.

Average home prices in 2022 peaked last summer, reaching $475,000 in June, which White said is typically the busiest time of year for residential sales.

White said homes may not be selling as quickly as they were in 2021, but that prices are not slowing down. Sellers are still getting 97-98% of their asking price, he said.

"I think that the amount of time that it's taking to sell a home is a little bit longer than it was perhaps 12 months ago. But the sales prices, we're not really seeing it change there," he said.

The increase in home values is not unique to Cobb, he said, and can be seen in other metro Atlanta counties. Cobb's draws for home seekers include stable government, low property taxes and good schools.

Homeowners can appeal their property assessments. White said about 1-2% of property owners file appeals, a low rate.

The projection released shows a 7% increase in commercial property values, a 16% increase in residential values, and a 2% increase in personal property values. The total digest is expected to increase from $49.2 billion to $55.6 billion.

In March of this year, the residential sales volume in Cobb was down 23% compared to last March, and the number of units sold was down 24%, per the Georgia Multiple Listing Service (MLS). The median sales price, however, was up 2.6% year-over-year.

"2022 and 2021 and even '20, they have been record years," said John Ryan, chief marketing officer for the Georgia MLS. "We have seen a bit of a correction ... In terms of activity, it's still a very active market. And the reason that we know it's an active market is the amount of inventory in Cobb County is still very low."

Low inventory correlates to rising prices, Ryan said.

Rising interest rates have affected people's buying power in the housing market, he added. Homebuyers may adjust their price range or the features they want in a home accordingly.

Looking forward, Ryan said interest rates will play a large part in the fate of the housing market.

"There's not going to be any big crash," he said. "It's still going to be active, it's still going to be moving forward, maybe just not at the pace of what it has in the past. And we're just going to have to wait and see how the economy shakes out in 2023."