Revaluation Shows 43% Average Increase in Property Values from Eight Years Ago

11/19/2007

Real estate in Wake County has appreciated at an average rate exceeding 5% a year, for an average total increase in value of 43% over the last eight years, Wake County Revenue Director Emmett Curl said today. That is similar to average increases in property countywide as a result of revaluations in 1992 and 2000, Curl said.

Curl announced the results of the Wake County Property Revaluation 2008 Project at the Board of Commissioners’ meeting today, as the County prepares to mail notices to about 315,000 property owners about their new property values.

Curl attributed the increase to the continued strong demand for land. Unlike some parts of the country that have seen slowdowns in housing and other aspects of their economies, Wake County’s real estate market remains strong in the face of rapid growth.

“It’s the basic law of supply and demand,” Curl said. “Right now, we have more demand than supply, so land prices continue to rise.”

Commissioners’ Chairman Tony Gurley said the results demonstrate that Wake County continues to attract residents and businesses as a high quality place to live and work.

“Our continued commitment to an excellent business environment, outstanding public education system, and attention to areas like public safety, public health services and environmental stewardship are evident in that we continue to attract jobs and citizens to our area,” Gurley said.

Residential values increased the most, on average, in the faster growing areas of Raleigh, which showed a 41% average increase (especially the housing market inside the beltline, which increased an average of 73%), along with Cary (38%), Morrisville (38%) and Apex (36%). In the unincorporated areas of the County, property values have increased by an average 35%.

Other areas of the county also have grown, but at slower rates. Average increases in residential property for other municipalities include: Holly Springs, 31%; Wake Forest, 29%; Fuquay-Varina and Rolesville, 27% each; Zebulon, 26%; Wendell and Garner, 25% each, and Knightdale, 23%.

The value of commercial property, which includes offices, buildings and all land zoned or classified as “commercial,” has increased by an average of 70% since the 2000 revaluation.

- more -
The Revenue Department will mail notices of assessment to all property owners this week, informing them of their new values. These notices are not tax bills, but will be used to calculate property taxes in July 2008, when the county and municipalities have adopted their new budgets and tax rates. The values also will be posted to the County’s Web site at www.wakegov.com/tax.

State law requires that counties revalue, or reassess, real property values at least once every eight years. This includes all land, houses, businesses and buildings, but does not include items that fall under the category of personal property, such as cars, boats, or planes, which are valued annually.

Since the County last updated its property values in 2000, the population has climbed by about 185,000 people and the number of single-family houses has increased by 90,000. Real estate prices have risen with demand. However, property tax bills have been calculated using the 2000 values, because that was the last official update. Taxes are calculated by multiplying assessed value by the current tax rate each year.

“This means that even though property values have increased every year, taxpayers have been paying taxes on the lower 2000 values,” Curl said. “This has created inequities between the share of taxes that are paid by property owners in areas that are appreciating faster than others. Revaluation is designed to eliminate those inequities and establish a fair, uniform tax base once again.”

The County began the reassessment process in late 2005, using data from recent sales and construction costs to determine the new value. The statistical analysis is checked and reviewed thoroughly to ensure that values are accurate and fair. Property owners have the right to appeal their new assessment if they feel it is not correct.

“The main thing property owners should consider is whether they feel the valuation is close to what they could get if they were to sell their house or building,” Curl said. “If it is, that means we’ve done our job.”
All property owners will receive information pieces with their notices of assessment, explaining the revaluation process and how to appeal their value. This information also is available at www.wakegov.com/tax.

The Wake County revaluation number is 919-856-6001.

back to current news items