|
|
|
Last Updated: Nov 14, 2008 - 7:06:19 PM |
With the weekend came a taste of fall, a frost warning, and the guarantee that we will have winter this year. Crisp mornings and cold sunny afternoons are a welcome relief for some who grow weary after the heat of a southern summer. Seeing a white Christmas is about as likely as finding a snow shovel in a Chesterfield garage. Landscapers who used to plow parking lots as a way to prop up income during the winter months are looking for other ways to put food on their tables.
One of the few things that one can be sure of this winter is that in January, property assessments will be in the mail.
Last year, tempers flared and the heat under the collars of Chesterfield residents was reported to have accelerated global warming. While most homeowners did not see evidence of much, if any, increase in the value of their home, some real estate assessments increased as much as 20 percent. The reason? Real estate assessments were based on data that was lagging by a year. So 2007 assessments were based on the market value of homes from the 2006 data, when the real estate market was still humming along.
So what will we see this year? We know that the market was at least flat in late 2007, but this year we have seen homes sitting on the market for months instead of the days or even hours that we saw back in 2006. I remember hearing the story of a guy in the Southbend neighborhood in Enon who stuck a for-sale sign in his yard one morning and had three offers before the day was over.
January’s assessment notifications will indicate that the value of your home will be about the same as it was the year before: not much appreciation, if any.
But early news from the Chesterfield assessor’s office is actually pretty good for homeowners.
Sales of homes with a market value of under $250,000 are remaining steady with values seeing a slight appreciation, although those in the upper ranges are taking a real hit. Sales records show that homes that sold for as much as $1 million just a couple of years ago are now being sold for 30 percent less. That’s a real bargain to be had if you can afford it.
Because of the changing real estate market across the country and wild fluctuations over the past couple of years, Chesterfield’s assessor is stepping up efforts to use more current data. For the 2009 assessments that will be delivered in January, real estate market information through September of this year will be used.
According to assessor Jonathan Davis, that’s about as current as you can get.
This year, assessments will include data culled from recent real estate sales and supporting data going back two years. Davis says it should be a very accurate picture of property values in Chesterfield.
Other good news for Chesterfield property values includes the fact that real estate foreclosures have not spiked this year like they have in other areas of the country. Foreclosures in 2008 are at about the same level as they were in 2007. Davis says his office has paid close attention to the foreclosure market, and Chesterfield buyers have apparently been the recipients of some pretty good loans.
So while the rest of the country burns in the wake of bad mortgages, falling property values, and a stark economic forecast, Chesterfield seems to be above the fray.
But even as homeowners will not see huge increases in assessments as they have in previous years, there could be a downside. New home construction is the lowest we have seen in decades, and other revenue sources for the county are drying up.
Virginia’s state government has reduced its budget by over $2.5 billion over the next two years. While most cuts in funding to local government will come in the social services area, the lack of program funding will also affect education, although not until next year.
Chesterfield will be dealing with a lack of revenue on a number of fronts, so the question is, how will the county deal with its funding challenges?
If real estate assessments remain flat and county revenue is down, will April bring a county tax rate increase? That is yet to be seen, but brace yourself; it seems unavoidable.
Chesterfield’s budget and finance director addresses the Board of Supervisors Wednesday (the issue date of this newspaper). That is when we’ll find out how Chesterfield is faring compared with other localities in Virginia that have been expressing distress during the nationwide economic crisis.
Although the budget director’s report will tell the story, it seems that Chesterfield has done a good job managing its finances. Just a month ago, the budget director said Chesterfield has always maintained a rainy day fund or sorts and will always protect county employees and services.
While we watch the rest of the country suffer, in the end, we may be watching from a comfortable distance. At least for now.
mfausz@villagepublishing.com | 751-0421
© Copyright by Village Publishing
Top of Page Comment
on This Article
The
Village News office is located at 4607 West Hundred Road Chester
Mailing address is PO Box 2397 Chester, VA 23831
Phone: 751-0421 Fax: 751-9155
Office hours are 9 a.m. to 5 p.m. Monday - Friday call ahead for
other hours.
Statement
of Journalistic Ethics
|
|
|
Village News:
Read right 'round the world.
|
|
