Jan. 23, 2020 - For homeowners who saw their value dip after the housing bubble burst, City Assessor Gary James has some good news: The vast majority of Hampton homeowners – 89% – will find their homes increased in value this year, while only 11% will see decreases. The median increase in home value is 2.54%. Particularly notable, James told City Council Wednesday, was that “no neighborhood saw a major decrease in value, so we have no pockets of decline in the city."
The total market value of all property in Hampton (including tax-exempt) is $15.2 billion, putting the city above its previous peak in 2010. The valuations are current as of Jan. 1, 2020 and form the basis for taxes in fiscal year 2021, which beings July 1.
The multifamily housing and commercial markets led the increase in valuations, largely due to new construction. Multifamily properties increased in value by 8%, commercial properties increased by 6% and homes values increased by 2.65%. That means overall taxable value for the city increased by 4.19%, which is more than double last year’s increase and the sixth straight year of gains.
James cited a number of projects in development, mostly commercial, that will further grow the tax base by the end of fiscal year 2021.
City Council has a goal to increase the amount and value of commercial property to shift the bulk of the taxes away from homeowners. This assessment showed the beginning of that shift, with the commercial values growing from 15% to 16% of the total market value of property in the city.
Sales price is a key factor for city assessors determining the value of existing homes in neighborhoods. Foreclosures decreased for the third calendar year, while market sales increased 29 percent.
The median sale price of Hampton homes has increased 7 percent in the past year and has shown increases over time, James said. In 2016, the median sales price was $189,900; last year it was 16% higher than that, at $220,000.
Asked about prospects for home values, James said he anticipates this year’s growth in home value of 2.65% “to be a good number in the future.” We need to continue to renovate homes and increase the value of our housing stock, James told Council. “It’s the renovated homes, the newer homes, the homes with quality construction that are selling. The ones that are older are not selling.” The gap between median sales price – $220,000 – and the mean value of all homes $169,300 – shows that.
Notices will be mailed Jan. 28 to owners whose property has changed in value.