Rising housing prices drive jump in assessed property values, Assessor’s Office says
Median residential home values increased by about 20 percent in Thurston County over the past year amid pandemic-related impacts, the Thurston County Assessor’s Office reports.
Commercial real-estate struggled over the past 20 months while residential values saw significant growth, according to a news release from the Thurston County Assessor’s Office. Whether this is a short-term market aberration, or a structural change remains to be seen, the release says.
“It’s been a seller’s market for the last year, with sale prices often exceeding list prices,” the release says. “Low inventory and buyer urgency were key factors.”
The Assessor’s Office sets assessed property values used to calculate property tax bills, and those assessed values are based on market values. The news release was issued last week as Thurston County property owners were receiving their annual Official Valuation Change Notices, and startled and angry people took to social media to express fear that their valuation increases would boost their property tax bills beyond their ability to pay them.
The release sought to calm those fears.
Local taxing authorities set their own budgets and tax rates while the Assessor determines assessed values based on market rates. Taxing authorities include school districts, fire districts, cities, counties and others.
Levy rates remain the same for all property types. However, values determined by the Assessor affect the amount of property taxes an owner pays.
Since most residential property values have increased substantially, they will simply be taxed at a lower rate to bring in the revenues local governments and school districts need.
“Each property owner’s taxes are derived by dividing each taxing authority’s approved budget, and any voter approved measures, into the taxing authority’s total taxable value,” the release says. “As a result, a change in your assessed value generally has a minor effect on a given property’s taxes.”
In the news release, the Assessor’s Office attributed the rise in property values to work-from-home policies that have driven Pierce and King county purchasers south to Thurston and other more affordable markets.
The median value of a detached single-family home in Thurston County was $373,200 over the last year, according to the release, but values have continued to rise in the most recent data from real estate sources.
Redfin, a real-estate brokerage, indicates the median sale price for a Thurston County home was $460,000 in July, which is a 21.1% increase over the previous year. Another real estate listing website, realtor.com, shows a median sold price at $450,000 for July.
For comparison, King County’s median sale price increased by 18.2 percent to $791,972 in July and Pierce County’s median sale price grew by 19.4 percent to $505,000, according to Redfin.
The median sale price in Olympia reached $475,000 in July, which is up 11.8 percent compared to last year, according to Redfin. Meanwhile, Lacey’s median sale price was $469,542 in July which is 24.7% higher than the previous year.
In Tumwater, Redfin’s data show a median sale price of $450,000 in July, 20.7 percent higher than last year. Elsewhere, the median sale price increased by 16.3 percent to $418,000 in Yelm and by 23.6 percent to $457,500 in Rochester.
The median sale price for Rainier increased by 21 percent to $412,500, according to Redfin. Notably, Tenino’s median sale price increased by just 2.1 percent to $382,750, the data show.
Though residential values have risen, other sectors of the real estate market were affected differently in the past 20 months.
Commercial real estate values increased by just 1.3 percent due to repeated COVID-19-related shutdowns, according to the release. Meanwhile, apartment values grew just 1 percent — a modest increase given this sector’s strength the previous year, the release reads.
Values in the retail and restaurant sector changed depending on size. Smaller and independent uses lost some value while larger and franchised uses modestly grew by 5 to 7 percent, per the release.
At the same time, the release says warehouse and industrial uses slowed to 1 percent growth following strong showings in the last several years. Values for vacant land and office or medical uses remained relatively flat or saw slight increases, per the release.
Don’t agree with your property assessment?
You can contact the Assessor’s Office at 360-867-2200, ValueInquiry@co.thurston.wa.us or visit the office at 2000 Lakeridge Drive SW, Building 1, from 8 a.m. to 5 p.m. weekdays if you believe any property characteristics are incorrect.
Otherwise, you can file an appeal of your assessment with the county Board of Equalization by Oct. 22, 2021. For more information on the appeal process, go to www.thurstoncountywa.gov/boe or contact Ruth Elder at 360-786-5135 or ruth.elder@co.thurston.wa.us
This story was originally published August 28, 2021 at 5:30 AM.
