Gilmer experiencing “accelerated,” high-price housing market
Property owners can expect their county-appraised values to increase this year as Gilmer County continues to see higher prices paid for homes.
At a Board of Assessors meeting last Thursday, Chief Appraiser Theresa Gooch described the county’s current housing market as “an accelerated market with a lot of inflationary to it.”
“We’re seeing home pricing changing,” Gooch told board members Gary Engel, John Williamson, Bill Logan, Tom Porter and Jerry Davis.
That is causing sales ratios used in each year’s tax digest to drop out of the range of compliance set by the state, Gooch noted.
“We should be between 36 and 44 and we always try to be somewhere around 38-39 with our ratios. Not just because of the number of sales, but (also) the amount of inflationary that is happening in the county with homes and sales, our before ratios are dropping out of compliance down to about 32 percent. That’s in pretty much every category, especially with homes. We’re seeing home pricing changing,” she added.
A sales study recently conducted by the Georgia Association of Assessing Officials (GAAO) shows how Gilmer compared with other counties in terms of home sale prices from 2017-2020. Gooch said, in 2018-2019, the local housing market saw about a 5 percent increase, where other counties generally had about a 3 percent increase. From 2019-2020, there was a 20 percent increase in sales prices here, she added.
“On average, other counties in the state were around 11 percent,” Gooch said.
There were 584 fair market sales here in 2017, and the estimated number of fair market sales for 2020 is 846, Gooch noted.
“That shows our volume is climbing along with the sale prices,” she said. “We’re not really getting starter homes, your typical 100-grade 1,200-1,500 square foot (homes). These homes are $250,(000)-plus.”
Board member Jerry Davis, a licensed appraiser, noted that home prices have been steady here since the beginning of last year, but have risen particularly in the last six months.
“You’re not seeing the $150,000 home. Doublewides are selling for $160-$170,000,” he said. “There’s (a home) on Newport Drive in Coosawattee River Resort with no view, no water frontage, a two-story new construction on a slab (with) two-and-a-half baths and, I think, 1,800-1,900 square feet. (It) sold for $400,000. The thing is, there’s no way (it) should appraise for $400,000 and you can’t have enough custom features to bring it up to $400,000. It’s just absolutely insane.”
Gooch said the assessors office has been revaluing each year as sale prices keep climbing. This year, tables and schedules used to determine property values will be adjusted, along with a base cost increase.
“Our biggest goal is to stay in line with the Department of Audits. They are currently looking at our 2020 sales compared to our 2020 values. We’re currently taking these 2020 sales to reflect 2021 values. We know they are going to need to trend up because our studies show, in the first quarter, the prices weren’t anywhere near where they began to climb in the second, third and fourth quarters,” Gooch said. “The cost of materials is going up and all of that is being taken into consideration with these purchase prices, not to mention the new developments that are coming through.”
Gooch noted the prices being paid for land without construction are also up.
“It may not be exactly 20 percent. You could see above 20 or below 20,” she added. “As a whole, in Gilmer County, sales prices have climbed. Last year, we were trying to decide (if) COVID was going to impact our purchase prices. Based on the amount of sales that took place, we can see that doesn’t seem to be the case.”
Porter asked if property owners can expect a “substantial increase” in their values this year.
“At this point, we can say confidently that the values are going up. Everybody will experience something a little bit different. With the type of market we’re facing, there’s no way we could ignore that and still stay in compliance,” Gooch said.
Porter and Engel noted that a raise in property values won’t necessarily mean a tax increase.
“It doesn’t mean the tax bill is going to go up. The millage rate will compensate for it,” Porter said.
Gooch said assessment notices will be mailed toward the end of May, and any change of value will be listed on the notices.