Home Values jumped double digits across metro Denver
Home values jumped double digits across metro Denver as the assessors re-evaluate the home values for 2017 and 2018. The median projected increase for residential properties is 25.9% and 20% for commercial properties. By state law, county assessors are required to re-evaluate the value of each property in their counties every two years which determines how much property owners pay in property tax. The period in which the assessor used for re-evaluation, was July 2014 through June 2016. The state must adjust the rate at which properties are taxed under the Gallagher Amendment, which was passed in the early 1980s to maintain a ratio between the property taxes paid by commercial owners and residential property owners. The amendment requires that residential properties make up 45% of the state’s total assessed value while non-residential properties making up the remaining 55%. This means that in years when the valuation of residential properties in the state rises rapidly, the rate at which those properties are taxed must be reduced to maintain the ratio.
According the Colorado Division of Property Taxation, the residential property tax rate has been reduced to 7.2% for property taxes in years 2017 and 2018, down from 7.96%.
Active listings for metro Denver jumped 8.94% from March and 2.68% year-over-year to 5,361 total units according to the latest report from DMAR. However, the number of sold listings decreased by 7.39% compared to previous month. The average price of a home sold that sold in April in metro Denver climbed to $439,161, up 3.41% from the month prior and up 10.53% year-over-year. This includes both attached and detached single-family homes. Year-to-date average sold prices of homes in metro Denver through April has increased by 6.05% compared to last year, 9.53% from 2015 to 2016, and 12.99% from 2014 to 2015.