Rising Property Values Create Potential Tax Concerns
Property values are rising in Southern Indiana and all over the country. That’s good news for property owners. In fact, most experts are calling for home prices to continue appreciating over the next several years.
The average expert projection for home price appreciation is roughly 6% in 2021. And the most recent Home Price Expectation Survey, a survey of over one hundred economists, real estate experts, and investment and market strategists, expects home appreciation to continue increasing in future years as follows:
Rising home values can help property owners build equity and ultimately build wealth over time. In fact Lawrence Yun who is the the Chief Economist with the National Association of Realtors stated "A typical homeowner in 2020, just by being a homeowner, they would have accumulated $24,000 in wealth. Corelogic's research shows that the average home equity increase for American homeowners to be even slightly higher at just over $26,000.
* Source: Corelogic
So it is a great time to be a property owner. Unfortunately, the bad news often comes when the property tax bill comes due. As property values increase, property taxes do likewise. That means more money out of your pocket each year.
Over the next few weeks, Assessor offices in Southern Indiana will begin sending out property value assessments for the taxes that will be payable next year. Most properties will likely see a significant increase in assessed value given the performance of the local real estate market in 2020.
In the coming weeks we will provide more information on how Indiana residents can appeal their property assessments. But for now, we wanted to make you aware of what is coming so you can be on the look out and begin preparing financially.
But for now, take a look at this video from a CNBC interview that gives a national perspective on this topic:
If you have more questions about your property taxes or property assessment, you can message us at 812Living@gmail.com. And as always you can find more info about all things real estate and Southern Indiana related at www.812Living.com.
And stay tuned for our future post where we outline the property tax appeals process.
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