Yesterday a loyal reader sent one of my articles to Dinah Kilgore, the Executive Director and Chief Appraiser of the El Paso Central Appraisal District. In the article , I questioned how property values could rise, if our population growth was fairly stagnant. You know, supply and demand. Here’s Ms. Kilgore’s reply:
Ok- we did see a lower # of months inventory of new homes – 4-5 months county wide (end of 2016 into 2017). That makes it a sellers market and they can increase sale amount because there is a lower # of homes. We also saw an increase in permits so that means homes are selling at a steader clip. The city had a 4% increase over last years certified values. We had been seeing within the city limits about a 1% the last couple of years. Areas like Canutillo, Clint, and Socorro saw higher numbers. The roll back rate is the rate that an entity can increase without going to the voters. That would be 8% of the effective rate; the effective rate is the rate that is needed to generate the same amount of revenue as the prior year using the new certified values. Out of that 4% increase about 1.5% was new construction, so actually you could say close to half of the increase was attributed to new construction. Does this address your questions?
Well, does it?