The Virginian-Pilot
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CHESAPEAKE
For the first time in the city's history, the average real estate assessment will show a negative - a drop of nearly 1.8 percent for the year effective July 1, the city's assessor told the City Council on Tuesday.
"Nobody has gone through this before," William L. Rice, the city's real estate assessor, said after the council's work session.
Only two years ago, Chesapeake's average assessment skyrocketed by nearly 24 percent.
The lower average assessments mean the city will reap about $6.5 million less than it budgeted for the year beginning July 1, said Betty J. Meyer, deputy city manager for administration.
That accounts for about a third of the more than $19 million revenue shortfall the city is expecting in the fiscal year to come, including revenue reductions from personal property taxes, sales tax, business licenses and other sources, Meyer said.
The city plans to mail out about 50,000 assessment notices in about two weeks, reflecting both increases and decreases. About 30,000 of the nearly 80,000 taxable real estate properties in the city will have no change in assessment in the coming year.
Owners of those properties will not receive a notice but can call the assessor's office at (757) 382-6235 if they want one.
More detailed information on the upcoming assessments will be available on the city's Web site in March, Rice said.
A 15-page handout Rice presented to the council served up a sobering array of numbers.
Sales data on detached single-family homes showed stark declines, with the number of new-home sales dropping to 288 in calendar year 2008 from 1,011 in calendar year 2004.
The average price of new homes rose to $402,352 in 2008 from $334,146 in 2004, after peaking at $472,747 in 2006.
The number of existing-home sales fell to 1,400 in 2008 from 3,789 in 2004. The average price rose to $304,569 from $222,956 in the same years, after peaking at $309,833 in 2007.
While the number of sales has dropped steadily, the number of foreclosures has risen to 559 in 2008 from 53 in 2006.
Rice said he was not fazed by the number of foreclosures.
"We're not California, we're not Arizona, we're not Florida, we're not Nevada, we're not even D.C.," he said.
"This area is a little unique," he added, citing the large numbers of military families and retirees and a conservative culture that combine for a stable real estate market overall.
The spike in foreclosures is not unprecedented, Rice said, citing figures of 578 in 1991 and 534 in 1992, when the nation was coming out of a recession tied to the collapse of the savings-and-loan industry.
Rice said he's not sure how long the current slowdown will last.
"Everybody will agree that real estate is cyclical," he said. "But the question is where's the bottom and where we go from the bottom."
Robert McCabe, (757) 222-5217 robert.mccabe@pilotonline.com
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Land values unchanged? Zillow.com says otherwise
I find it hard to believe it's only my home value that is changed. So I checked out zillow's zestimates, and I am now better equipped to go before the appeals committee. Oh yeah, you can take ownership of your homes data on zillow, add pics, addition info, etc.
Overtaxed
We all are over taxed in the region. These real estate accessors probably work for AIG and line up there pockets as well as city council. City Council in Chesapeake could careless what we pay just as long as they have money to support there stupid waste of taxpayer pet projects. There needs to be justification on why everyone's real estates taxes are far way outrages. Big deal 25% rise and 1.8 decrease. Wow! I can afford maybe to buy an extra six pack of beer.
Simple Question
Why are taxes not falling at the same rate as they increased ?????
What goes up, must come down!
"Only two years ago, Chesapeake's average assessment skyrocketed by nearly 24 percent."
As we know, this was going on all over the country, and is as much a reason for the current drop-off (read, market adjustment) as is anything else. Some say the drop off here in Chesapeake isn't big enough, and they may be right. But I think that line is a good explanation for most of what has transpired, and will transpire.
Rise 25%, fall 2% - sounds
Rise 25%, fall 2% - sounds like a great way to increase revenues. How on earth can any cities be having budget problems with these kinds of net increases? I'll tell you in two words: Entitlements and Irresponsibility.
It's called mark to market.
It's called mark to market. If a home is listed with a wishing price with no sale, that doesn't count. I believe they don't count "distressed" sales either (Foreclosures, perhaps short sales). Obviously the city wants as much money as possible. Everyone wants the highest appraisal possible when it's time to sell (or buy a home for use for fraud), but the lowest appraisal possible when it comes to buying a home to live in. Have at it people with good credit, mark those values to market. We need buyers to log the declining prices. People who buy now are "knife catchers." I've seen no good deals. 2001 price? Then we'll talk. Till then, it's a better time to rent.
BETTER LOAN STANDARDS
are part of the issue. There is no law that requires houses to be sold at assessed values. During the "boom" times houses were selling for tens of thousands of dollars over the assessment. Now it's the bust times. People with good credit are buying, but looking for the best deals.
part of the problem
The assessor uses 'like sales' to set home value, but that only takes into account those houses that sell.
It makes no adjustment for houses that have fallen in value below their mortgage and can't be sold. Those remain on the books at their current assessment even though they are for sale below that price and still won't sell.
Since they can't sell them, they put them up for rent, like the vacant house next door to mine. Those houses remain overvalued on the assessors books and prevent accurate valuation of other houses in the neighborhood.
Locals from Chesapeake need to somehow band together..
and initiate a class-action lawsuit against the City of Chesapeake for these ridiculous assessments. They don't want to lower then anymore than 1.8% because they'll be forced to cut city services more than they currently are without the additional tax income. So what. Too bad for them.
RIPPING US OFF, NICE & LEGAL
If the real estate assessments rose 25% two years ago, and only fell 1.8% now, we are still paying too much under a falsely inflated real estate market. Our so called "leaders" of our city have committed themselves to a level of spending that the true real estate market cannot handle. Everyone throughout our country is curtailing spending, not Chesapeake. At a time when city employees are being asked to work four days instead of five, and several thousand are being laid off throughout the United States, money is so available in Chesapeake that we are giving out 5% raises. If families have to cut back on their budget, why shouldn't our city have to cut back on theirs. Yes, city hall is "FAT & HAPPY" at the suffering of the average taxpayer. You want to make it right? Send homeowners a real estate tax rebate check for the falsely inflated 25% you charged us two years ago. Do that, and then were "Even Steven". But wait, you can't do that, because you spent all that surplus revenue you collected two years ago, like a kid in a candy store.