Montrose - Daily Press

MONTROSE — The weak economy might not be reflected in property valuation notices coming out May 1.

Valuations are based on the level of market value as of June 30, 2008, which uses market sales data from Jan. 1, 2007 through last June. That level does not necessarily reflect changes in the market since, Montrose County Assessor Brad Hughes said.

Valuations, which are used along with the assessment rate — 7.9 percent for residential and 29 percent for most other types of property — and mill levies to set property taxes, are done every two years, and are based on conditions from the prior year.

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The way state law has set up valuations leaves open the possibility a home's assessed value will be greater than the current market value when homeowners receive valuation notices.

But Hughes said values by in large are flat, and that for the most part, properties are still worth what they were in June 2008. The Colorado Assessors Association, District 5, said property values in the region are expected to remain constant or have increased.

Hughes' and other assessors' offices have analyzed the market since June 30 and found fewer sales, but prices holding steady.

"It looked like the volume (of sales) was continuing to decline, while the sale prices were level," Hughes said. "Even if we used current sales, it still would not show a decline. We legally had to look at sales from January 2007 to June of 2008. When we looked at sales being flat, that was June 2008 to February 2009."

Hughes said that in January 2007, things were still increasing, but everything after June 2008 was flat.

Debbie Griffith, Delta County assessor and chairman for CAA District 5, said in a news release property owners' perceptions could be off.

"Because the volume of sales has decreased during this same period, the perception of property owners, especially those who have had their property on the market for a length of time, is that values are dropping," she said.

"However, in general, that is not the case. The assessors' values are not based on the number of sales but on the prices of the properties that have sold."

Hughes reiterated values did not change much between 2007 and 2009, but said people might seek an appeal because they believe values have declined.

"The past six years we've had double-digit increases in values. This time, the majority were no change, up to a 6- to 7-percent increase," he said.

Although some properties went up more locally, others' value, such as certain subdivisions, declined.

Hughes said list prices are going down and there is a surplus of vacant lots. He said it is becoming difficult to sell vacant land and higher-end homes because of the economic downturn.

Don Bailey, president of the Montrose Association of Realtors, said that though he understand the assessor is bound by law, the timing of the property valuations is unfortunate, given the economy.

"We don't like it. Nobody likes it, but it's the way it is," he said.

 

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