The 2013 Reappraisal: Property Values Continue to Decline

May 3rd @ 10:19 am in News by Scott Staley

Montrose County

Montrose County Assessor Brad Hughes announces 2013 Notice of Valuations were mailed May 1 in accordance with Colorado Revised Statutes.  Taxpayers may view their property information online prior to receiving their notice through the assessor’s online records search called Eagle Web (http://eagleweb.montrosecounty.net/eagleassessor/web).

All classes of real property, with the exception of agricultural land, experienced a decrease in value between June 30, 2010, and June 30, 2012.  Vacant land experienced the greatest decrease in value, declining on average about 37 percent. The large decrease in vacant land valuations can be attributed to an oversupply of subdivided lots accompanied by lack of demand for new residences. Additionally, it appears that several land developers “unloaded” their lot inventories at vastly reduced prices.  Residential improved property decreased an average of 20 percent during the same two year time frame.  A proportionally high number of sales occurring after foreclosure undoubtedly impacted home values. Thirty percent of the residential sales used for the 2013 revaluation involved a financial institution as the grantor.  Commercial property values only declined an average of 8 percent during this period.  Although the commercial market experienced a measureable decline in rental rates, actual market sales transactions indicated lower capitalization rates resulting in more stabilized valuations.

As seen in the graph below, it appears that this continuing market decline has all but erased the prior market appreciation experienced in Montrose County between 2003 and 2008. Home values will be dropping to about the same level of value as they were in mid-2004. While vacant land is falling about 20 percent below, commercial properties are about 15 percent above the historic June 30, 2004, values.

 

After receiving your new Notice of Valuation in May 2013 please review the change in value. If property owners disagree with the revised valuation, there are detailed procedures on the back of the notice explaining how to appeal the valuation. If there are additional questions, concerns or comments, please call the Montrose County Assessor’s Office at (970) 249-3753 or email at assessor@montrosecounty.net.