MASON CITY, Iowa - You may be getting a notice in the mail for a change in your property values. But why are they increasing?
City assessor Dana Shipley's office has seen a record number of sales and high prices, all within the last 12 months. The average value increased about 7% from the 2019 value, though she has seen it jump as high as 14%.
"Different neighborhoods sell differently. Two story home versus a single story home, brick versus frame, has it been remodeled or not? Is it on a busy highway or is it tucked away in the corner of a subdivision? There are so many factors in what people will pay."
Shipley points to a couple of key factors behind the increase.
"One is the low interest rates, and two is the lack of inventory that are driving up sale prices. Therefore, that affects assessed values because sale values in Iowa are 100% market value."
Because of those low interest rates, Shipley notes of a strong demand that potential home buyers are taking advantage of as they're looking to upgrade. She points to a conversation she had with a local realtor.
"He's pretty got much buyers already lined up before a house even goes up for sale. They're being sold as the signs are going in the yard, or they're being sold within a matter of hours or a very, very short time."
She also points to high construction costs, about 30-50% within the last year, with many likely to wait until costs go down and buying an existing home in the meantime.
"There are a lot of townhomes, condos, apartments built in the last few years. The amount of single family dwelling construction has slowed a little bit."
Though there is a lot of ongoing construction development, Shipley notes that existing buildings on the commercial market are not selling a lot more than they were a couple of years ago.
Because of the state's limit on how much of the value can be taxed (3% allowable growth per year), and due to budgeting entities like the city and county needing to levy against that value and setting their budgets, Shipley wants owners to keep in mind that the 2021 valuation will not have a tax notice generated on until the fall of 2022.
By Iowa law, assessors are required to revalue all real estate on odd numbered years.
To look for your property's value, click on the links below:
*Cerro Gordo, Worth, Winnebago, Mitchell, Freeborn and Fillmore Counties: https://beacon.schneidercorp.com/
*Hancock County: https://hancock.iowaassessors.com/
*Floyd County: https://floyd.iowaassessors.com/?site=FloydCountyIA
*Howard County: https://howard.iowaassessors.com/
*Dodge County: https://maps.co.goodhue.mn.us/Dodge%20County%20TPV/