Friday, February 29, 2008
Assessed Property Values for Real Estate in Kitsap County
We received an inquiry about assessed property values that deserves more discussion in this forum. Assessed values have risen at a double digit rate the past 4 years in Kitsap County, and now that prices are actually falling, we were asked if a homeowner needs to submit a request to the County for their assessed value to be rolled back. Our property tax system is quite complicated, and we’re not experts by any means, but we’ll try to provide a simple explanation and refer you to where you may find more details. We have discussed the information below with the Assessor’s Office.
Although assessed values have been rising at a double digit rate for the last 4 years, the actual total amount of tax collected has not been rising at the same rate. For instance, although the total value of existing properties increased 14% overall last year (which was the basis the the valuation for this year), the amount of tax collected increased by 4%. As the value increases, the tax rate decreases to compensate, so a higher valuation doesn’t automatically translate to higher taxes by the same amount. Our property values have risen faster than some other parts of the state, so for that part of the total tax that applies statewide (part of the school tax), our community has been paying an increasing portion compared to some other communities. With level or falling values the County expects that this disproportionate burden will subside.
The law limits how much any taxing district (and there are 43 districts in our County - so here’s part of the complication) can raise regular taxes (without voter approval) in any year. Basically, they are limited to a 1% increase. Voters can approve tax increases for school levies, capital projects (like a new city hall), etc. that add to this. Also new construction homes add to the total increase in taxes collected. Typical tax changes last year varied throughout the County. Significant increases in some areas were the result of voter approved measures (Fire District Levys in North Kitsap and Poulsbo, for instance).
Area Typical tax change for homeowner
Bainbridge 3.3%
Bremerton 1.4%
Port Orchard - 1.7%
Poulsbo 3.1%
South Kitsap Essentially Zero
Central Kitsap Essentially Zero
North Kitsap 8.4%
So let’s turn to current assessed valuations and whether property owners need to take some action with the County. The County has a goal to inspect and reassess each parcel every 6 years. In addition, they make an annual adjustment that is estmated based on real estate sales. There should not be much change in your property valuation for next year (based on this year’s sales), and we would expect that you might see taxes increase by several percent (by adjusting the tax rate for your property), just as occurred this year. Any levy or bond issues in your community might cause taxes to increase by more. The County doesn’t provide the nitty details of how they compute the estimated value change, so we can’t say whether your assessed value will go down even if the median sales price of property in your area declines in 2008. The County reported that this is the year in the 6 year cycle where they reassess Bainbridge Island. While the County agrees that the Bainbridge market has slowed, they did point out that more than half of the recorded sales were above current assessed values. This concept might apply in other areas as well.
There are exemptions whereby you can reduce the amount of tax you owe on your property (such as the senior exemption, which is based on both age and income level to determine eligibility). There is also a program whereby certain homeowners can defer payment of taxes. The County also has procedures for a homeowner to question their assessed valuation. The Assessor’s Office reported that they often make adjustments based on information supplied by homeowners. Our advice would be not to request a change due to the market change alone, but to submit one if you can cite significant differences between how your property is assessed and how comparable properties in your neighborhood have been assessed.
All of what we’ve presented above is from the County Assessor’s web site at http://www.kitsapgov.com/assr/levy/books.htm. Download the Assessor’s annual report for 2008. That document provides lots of details, including how to apply for exemptions, how to challenge your assessed valuation, and answers to frequently asked questions.
Wednesday, February 27, 2008
Download the February Waterfront Update
Download the February Waterfront Update. This is your guide to our latest waterfront listings and market statistics about waterfront sales in Kitsap County.
Sunday, February 24, 2008
Kitsap Real Estate Local Markets in January 2008
We have published this article monthly for most of the past year to explore some of the significant variations in the Kitsap Real Estate market. January’s inventory rebounded from December, rising by 9.8%. Median closed sale prices rose 3.8 in January compared to December, but for the first time show a decline of about half a percent compared to a year ago. The State of Washington recorded its first ever (since records were started in 1994) year over year price decline. Median prices were down 2.5% statewide in the 4th quarter of 2007 compared to 2006. We try to breakout the new construction sales from the resale market in Poulsbo to give a more accurate presentation of conditions there. Below are graphs of the month-to-month market fluctuations of total listings, number of closed sales, and median sales price for each areas. The descriptive comments for each area below cite the more consistent year-to-date numbers.
Total listings on the market by month for various Kitsap communities
Number of Closed Sales each month for various Kitsap communities
Variations in Median Price Month by Month for Closed Sales in various Kitsap communities
Bainbridge Island Real Estate
Please keep in mind that it’s the first month of a new year, so the year-to-date numbers may be quite variable compared to last month. There is only a limited amount of data in January’s sales. Residential homes on Bainbridge Island were selling for a median price of about $563,500 at the end of January, a drop of 5% from a year ago. The January median price for closed sales was 7% less than last month’s median price of $605,000 and 17% less than the median for all Bainbridge sales in 2007. Kitsap County median prices fell less than 1% compared to a year earlier. The YTD number of Bainbridge closed sales is down 24% from a year ago, and the YTD number of pending sales is down 59%. No doubt the Bainbridge market is suffering from the current lending environment, which prices 30 year fixed rate jumbo loans just under 1% higher than conforming 30 year fixed rate loans. The number of closed sales is down 24% Countywide from a year ago. The number of active listings on Bainbridge (216) is up 29% from a year ago. The Bainbridge listing inventory has also risen 19% since December. The inventory turnover (total homes on the market divided by number sold last month) is 18 months. Bainbridge Island is a strong buyers market.
Bremerton Real Estate
Statistics we refer to are for that part of Bremerton encompassing the downtown core and west to Kitsap Lake. The market for other parts of Bremerton and its suburbs should have approximately similar trends. Homes in Bremerton were selling for a YTD median price of about $180,000 at the end of January, about 10% lower than a year ago. The January median price for closed sales was 5% higher than the median for last month, and it was 15% lower than the median for all Bremerton sales in 2007. Kitsap County median prices fell less than 1% over the past year. The YTD number of closed sales is down 17% from a year ago (compared to a Countywide drop of 24%), and the YTD number of pending sales is the same as last year. The number of active listings (223) is up 18% from a year ago. Unlike some other parts of the County, the listing inventory has only risen slightly - less than 1% - since December. The inventory turnover (total homes on the market divided by number sold last month) is 11 months. Bremerton is a buyers market.
North Kitsap Real Estate
Using the example of Kingston - the largest housing market in North Kitsap - homes were selling for a median price of about $392,500 at the end of January, down about 13% from a year ago. Kingston prices fluctuate more than some of the other markets because of the lower listing and sales volume. Kitsap County median prices fell less than 1% over the past year. The YTD number of closed sales is the same as a year ago, and the YTD number of pending sales is down 50%. The number of closed sales is down 24% Countywide from a year ago. The number of active listings in Kingston (76) is up 36% from a year ago and up just 1 percent since the end of the year. The inventory turnover (total homes on the market divided by number sold last month) is 13 months.
Poulsbo Real Estate
Statistics we refer to are for that part of Poulsbo encompassing the downtown core, from the head of Liberty Bay southeast to Ne-Si-Ka Bay, including parts north to Sawdust Hill Rd. The market for other parts of Poulsbo and its suburbs should have approximately similar trends. Homes in Poulsbo were selling for a median price of about $349,500 at the end of January, down about 4% from a year ago. Kitsap County median prices fell less than 1% over the past year. The number of closed sales YTD has fallen 29% compared to last year, and the number of YTD pending sales has increased 17%. This compares to a drop of 24% since a year ago for Kitsap County as a whole. A large portion of the currently pending sales is from presales at one moderately priced new construction development - homes that never appeared as active listings. The Poulsbo listing inventory (146) has risen by 47% compared to a year ago and is 24% higher than it was at the end of December. The inventory turnover (total homes on the market divided by number sold last month) is 8.6 months. Calculating inventory turnover in this manner is artificially low since a number of the new construction homes closing did not show as active listings. Of 42 current pending sales, 33 are new construction. Using only the 80 non-new construction active listings in Poulsbo and the 5 non new construction sales closed last month, the inventory turnover would be 16 months.
Silverdale Real Estate
Homes in Silverdale were selling for a median price of about $397,500 at the end of January, up about 40% from a year ago (this is a case where the low number of new year sales distorts the picture). The Kitsap County median closed sale price has fallen less than 1% over the past year. The number of YTD closed sales was down 50% from a year ago, compared to a drop in closed sales of 24% for the County as a whole. The number of pending sales YTD is down 17% from a year ago. The number of active listings in Silverdale (101) is 10% higher than a year ago, and it’s also 10% higher than it was at the end of December. The inventory turnover (total homes on the market divided by number sold last month) is 14 months.
Statistics not compiled or published by NWMLS
