Why do property values change?
• A property’s value may change for a number of reasons. The most obvious is that the property changes. A bedroom, garage, or bathroom is added, or part of the property is destroyed by vandalism or fire. • The most frequent cause of a change in value is a change in the market. If a community’s major industry leaves, property values can collapse. As older neighborhoods with good quality housing are discovered by young homebuyers, prices gradually rise and then may even soar as the neighborhood becomes fashionable. A shortage of detached homes in a desirable city neighborhood can send prices to extreme levels. In a recession, larger homes may stay on the market for a long time, but more affordable homes are in demand, so their prices rise. • In a stable neighborhood, with no extraordinary pressure from the market, inflation may increase property value. • For more information contact the Assessor’s Office.
