by JENNIFER BIUNDO
In a glum real estate market dragged down by foreclosures and short sales, it should come as little surprise that Hays County’s preliminary 2011 property appraisals saw negligible gains this year.
The minor increases – and in many cases, flat values – will come as good news to residents in the Hays school district, who are preparing to add another taker to their tax bill following the annexation into the Austin Community College district.
But for those hoping to profit or break even on the sale of their property, the sluggish appraisals may be cause for concern.
“It’s a pretty dull market,” said Hays County Chief Appraiser David Valle. “There were years where we were adding a billion dollars to the appraisal roles. At least it’s still on the plus side.”
Hays County’s total preliminary market value clocked in at $14.58 billion, a 2.68 percent increase from the year prior, representing about $380 million in growth. Most of that increase comes from new construction rather than rising appraisals, Valle noted.
“Keep in mind that if it weren’t for that growth, you could be looking at a flatter market,” Valle said.
Despite a slow market for commercial growth, the county added about $90 million in industrial and commercial property values, totaling $1.39 billion, an increase of 4.5 percent. With the addition of several new apartment complexes constructed last year, the total value of residential multi-family property increased 7.9 percent from $519 million to $560 million.
The average home value in Hays County increased by $977 to $163,701 in 2011, representing a gain of less than one percent. At the height of the housing market in 2008, the average home value peaked at $174,340, an 8.75 percent increase from the year prior. But following the nationwide housing crash, 2009 and 2010 saw significant declines in appraised home values.
In the Hays CISD region, the average home value increased by less than one percent to $132,272 in 2011.
The average home value in the city of Kyle stayed flat at $127,480. That’s good news compared to last year, when home values dropped by 3.67 percent. Kyle’s total market value now sits at $1.65 billion. The bulk of that value, $1.1 billion, comes from the city’s 8.948 single family homes. The city added 282 homes this year, amounting to an additional $35 million. Five new commercial properties yielded another $26 million this year.
In Buda, where home values typically run higher, the average appraisal increased by less than one percent to $159,841. Buda’s total market value clocked in at $758 million, including $446 million in single family homes and $152 million in commercial property. This year the city added 239 new homes amounting to $40 million, bringing the total number of single family residences to 2,795. Eight new commercial properties added about $6 million to the tax rolls.
In the more upscale western half of the county, average home values also increased by around one percent in Dripping Springs and Wimberley, to $268,620 and $195,513, respectively. San Marcos had the lowest values, at $120,252.
Despite the marginal increases, many established homeowners will find no change to their appraisals, Valle said, noting that most of the increased value comes from new construction.
“You’re seeing a great number of foreclosures in the Kyle-Buda and Hays CISD area,” Valle said. “It’s making those markets a little tough.”
Local realtor David Aston said that the marginal increases seemed to be in line with market values.
“There’s been a lot of foreclosures and short sales and prices have actually declined,” Aston said. “I would have expected it to pretty much remain flat. I think we did real well holding on to that value as well as we could the last few years.”
Aston estimated that foreclosures make up about 30 percent of the market in the Buda-Kyle area, driving down selling prices among competing properties.
“That’s definitely what’s keeping the values down,” Aston said. “They are selling in some cases at lower than market value.”
If local property owners see a significant increase on this year’s appraisal, they might have a good shot at appealing the tax hike, Aston noted.
“If they’re an average home in Buda or Kyle you would probably have enough comparable homes in your area to justify contesting the value,” Aston said.
The appraisal district started mailing property appraisal notices this week. Property owners that receive a notice of appraised value will have until June 1, 2011 to file a protest to appeal to the Appraisal Review Board. Property owners can file a protest at the Hays Central Appraisal District office, located at 21001 N. IH 35, Kyle, Texas 78640, or call (512) 268-2522 for information.
