Assessments Show Suburban Boston Housing Market Stabilizing
Ever wonder what your neighbor’s house is worth? Just take a peek at the assessor’s valuations, the Westford (Mass.) Eagle recommends.
The Assessor’s Office calculated values for the fiscal year 2007 based on sales from 2005, said Principal Assessor Paul Plouffe. Understanding the way values are derived helps people comprehend the Massachusetts housing market.
Not surprisingly, in the suburbs of the Boston-area market, some neighborhoods are still appreciating in value, while most are stable, and a select few have depreciated somewhat.
“We suggest, at this moment in time, that things are very, very stable, even compared with other towns,” Plouffe said.
In general, home prices within the same neighborhood are within the same range because they are usually similar in size, style and condition. The three highest valued residences in Westford, for instance, are all on the same street - and the only homes on said street.
Selectmen voted in late December to adopt a single residential mill rate of $13.10 per thousand with a small commercial exemption of 10 percent for businesses worth less than $1 million. Last year, the tax rate was $12.92. The commercial tax rate is $13.27 per $1,000 of valuation.
The new tax rate would mean that for an average residential property valued at $470,337, the 2007 property tax bill would come to approximately $6,161.
That’s a big hit to homeowners already struggling to pay the Massachusetts mortgage every month, but following a discussion about taking the burden off residential taxpayers, selectmen voted to adopt the same scenario as last year.
However, assessors reported that new growth had decreased and 30 percent fewer building permits had been issued in 2006 than in 2005.
Assessors include in the new growth category any new construction or any renovation, paid for in large part via home improvement loan funds from owners tapping equity). A new deck or kitchen renovation that increases taxable value of a home is considered new growth.
Plouffe said that despite what you hear, the residential market is still rather strong. The average assessment value for a single-family home is $470,337, up two percent from $461,379 last year.
“If you are listing a house today for a reasonable asking price, you will see it sell in a reasonable amount of time,” Plouffe said.
However, he said homes are often listed for sale at a listing price that is far higher than the assessed value and that this impedes sales.
The commercial and industrial market has also seen some improvement, as have rentals, with vacancy rates lower than last year. Although values are up slightly in 2007, there is still a lot of room for growth.”
“Things are a little bit better. I think the vacancies have gotten a little bit better,” Plouffe said.
SOURCE: The Westford Eagle