Fueled by strong demand, soaring home prices and less vacant land for new residential developments to accommodate population growth, property values in Central Florida are expected to reach record highs compared to the last year.
In Seminole, Real estate appraiser David Johnson said the assessed values of real estate and personal property in his county will rise 12% to a record high of $44.7 billion over the past year, showing that the real estate market for residential properties, commercial and industrial “is very strong”.
Seminole also saw nearly $1 billion in new construction added to the tax rolls during the year.
“Those are big numbers,” Johnson said. “There is a strong demand for properties and a relatively low supply. Prices therefore increase. It’s a matter of supply and demand. And we’re seeing that across a wide range of properties, and residential is a big part of that.
Area property appraisers, including Johnson’s office, released preliminary estimates of assessed property values this week as local governments begin preparing their budgets for the next fiscal year, which begins Oct. 1.
Orange County has seen its values soar about 18% to $268.5 billion over the past year.
And the county’s molten residential market also hit a new high, hitting nearly $124 billion in appraised value, shattering the previous peak of $106.5 billion set a year ago, the assessor said. real estate Amy Mercado.
“The demand is so high and there is no stock,” Mercado said. “So I don’t see him slowing down yet.”
Orange County saw $5.2 billion in new construction.
Mercado said authorities should take the increased values into consideration when determining the mileage. “What that ultimately means is up to them and their budget needs,” she said. “As a rule, the excess is set aside for times such as the recent pandemic.”
In Osceola County, property values are expected to rise nearly 15% to $39 billion, according to real estate appraiser Katrina Scarborough. The county had nearly $2 billion in new construction.
In Lake County, estimated values soared nearly 12% to $29.5 billion. The county also saw nearly $940 million in new construction.
Skyrocketing values can be a mixed blessing for residents.
This means that long-time homeowners will see their home’s value increase, but won’t have to pay significantly more property taxes. Florida Save Our Homes ceiling maintains the annual increase in assessed value at 3% for homes with a homestead exemption. This is to prevent long term homeowners from being taxed out of their homes.
But it also means that new homeowners — or those who have just bought and moved into a new home — are likely to see big tax increases over the coming year, compounding the affordable housing problem of the region.
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“We often hear that from people who have just bought a new home,” Johnson said. “It’s a big deal, that’s for sure.”
Johnson said home affordability is “a three-legged stool” made up of mortgage payment, taxes and insurance.
“When any of those things go up, affordability becomes an issue for some people,” he said.
However, the values published on June 1 are only estimates and may change. The official certification date by which real estate appraisers must provide their numbers to the State Department of Revenue for the 2022 tax assessment roll is July 1. Homeowners will receive their property tax assessments in August.
Tax authorities including school districts, county commissions and city councils have until September 30 to pass their 2022-23 budgets.
The cities with the largest increases in estimated values in Orange County are Oakland, which saw a 38.7% increase, and Apopka, 25%. In Seminole, Casselberry jumped 16%; in Lake, Mascotte was up almost 28%; and in Osceola County, St. Cloud jumped 18%.