Montgomery County residential property values are rebounding from the worst declines since the Great Depression because of a revived local housing market.
More than 60 percent of county residential properties are valued higher than three years ago, representing “a significant turnaround for the county,” said Karl Keith, Montgomery County auditor.
Keith released preliminary results Thursday of the 2017 triennial value update.
“This is good news for the community as a whole as it reflects on the state of our overall economy,” Keith said. “This growth is a very positive sign and indicates that we are indeed back on track.”
The higher valuations — the biggest gains since 2005 — also could mean increased property taxes for some next year.
Values on all properties, including commercial, rose 4.5 percent, representing $1.2 billion in gains and clawing back about a third of the $3.5 billion in value lost after 2008, Keith said. The county’s tentative total property tax value is a little more than $26 billion.
Keith said the county experienced historic drops in values the last two cycles — seven percent in 2011 and another four percent in 2014.
“We hadn’t seen drops in value like that in Montgomery County since the Great Depression in the 1930s,” he said.
Residential property values rose 6.3 percent, a potential benefit for schools, which receive roughly two-thirds of every property tax dollar, said Montgomery County Treasurer Carolyn Rice. In 2014, as the region continued digging out of the Great Recession, values decreased on 70 percent of residential properties.
Over past three years, the county has had more than 17,000 valid residential real estate sales, a 53 percent increase over past cycle, Keith said.
“Property owners whose homes lost value during the Great Recession are finding equity being restored,” Rice said.
“It’s great news for our citizens that their property values are improving,” she said. “That means that neighborhoods are stabilizing.”
While some of the county’s 1,200 neighborhoods may see significant increases in property values, others may see little or no increase. The typical property tax bill is made up of taxes that vary by kind and from jurisdiction to jurisdiction, Keith said.
Keith will brief officials of Montgomery County’s communities next week on how the numbers may impact local tax bases.