If your notice from the county appraiser’s office showed a significant increase in your home’s value, you weren’t alone this year.
A report from County Appraiser Paul Welcome’s office says property values are coming back with a vengeance this year — the strongest since the Great Recession.
That’s not just in residential values. Commercial and industrial properties also are showing an uptick, according to the report.
The annual revaluation report uses data from the Multiple Listing Service as well as sales questionnaires and other sources to set values upon which property taxes are based. Welcome cited the listing service figures showing a two-and-a-half month supply of homes available for sale, when normally there are about six months.
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“So it has become very much a seller’s market,” Welcome said, when presenting the report to the county commission March 2.
About 96 percent of Johnson Countians saw their residential property values increase this year, with residential values rising an average of about 7 percent, excluding new apartments. Values overall, including new construction, were set 8.63 percent higher than last year.
Some of the biggest increases were in the southern part of the county, with Spring Hill leading the way with a 16.5 percent increase and De Soto next with 14 percent. Edgerton was third with a 12 percent increase.
Among cities within the Interstate 435 loop, Prairie Village had the biggest increase in appraised value, with 11.9 percent.
In most instances, selling prices did better in 2016 than their appraisals. The average appraised value of a home in Spring Hill last year, for instance, was about $171,129 but the average sale price that year was just over $260,000. In Prairie Village, the average appraisal was $244,925 but the average selling price was $293,058.
Residential building permits were up as well, with 1,670 issued in 2016 compared to 1,585 the previous year.
Though Welcome’s analysis notes a continued expansion, not everyone agrees. Chad Taylor, listing specialist with Keller Williams Realty, said the residential housing market appears to have softened in recent months.
“Most areas are transitioning out of the strong, hot seller’s market,” he said. In fact, median sales prices have dropped off from what may have been a peak in April through June of last year, he said.
“They’re hanging their hat on values that are no longer relevant,” Taylor said.
Looking at areas like Blue Valley and Shawnee Mission school districts, Taylor said, “none are performing at the rate Johnson County says they should be taxed.”
Still, the report notes that the real estate market is continuing to rebound from negative territory of the recession from 2009 until things leveled off in 2013. Values have climbed since 2013 for a variety of reasons, the report said.
Growth near the BNSF Intermodal and Logistics Park in Edgerton and other industrial parks in the southwest part of the county accounted for a strong housing market in that area and an industrial real estate market that Welcome described as “hot.” There are at least five new warehouse buildings in that area with square footage from 500,000 to 1 million-square-feet, he said.
The apartment building boom continues, with occupancy and rents on the increase, according to the appraiser’s market analysis. The report noted some 1,450 units started this year, with 850 of those north of Interstate 435.
Welcome told commissioners the apartment building strength can be attributed to a couple of trends: People nearing retirement are looking to downsize their housing while millennials who saw their parents lose wealth in the recession are leery of owning a home. Meanwhile, students continue to graduate and set out on their own, he said.
Land values in the northeastern part of the county also are going up, partly due to tear-downs, the report said.
Office and retail also is picking up, according to the report, as some new shopping developments are going up in south Overland Park and along the 135th Street corridor toward Olathe, and as work is renewed on previously stalled shopping center projects.
Even hotel construction is up significantly, with 500 rooms being built in six Johnson County sites. Forty percent of that work is being done as redevelopment.
The new appraisals are one of many steps the county must take before mailing property tax statements out Nov. 1. The deadline for filing an appeal is March 31.
Appraised market value
Single family homes, new and existing
City 2016 2017 % increase
Spring Hill $171,129 $199,342 16.5 %
DeSoto $192,979 $220,004 14%
Edgerton $114.518 $128,342 12%
Gardner $173,536 $194,634 12.2%
Prairie Village $244,925 $274,082 11.9%
Olathe $228,523 $249,490 9.2%
Source: Johnson County