Housing prices dipped to start 2023; new data show 99.5% of properties hitting asking prices
June 16, 2023 6
In bad news for homeowners, Cook County at- and over-the-asking price property sales appear immune to the rise in interest rates for a variety of reasons.
Property selling prices play a large role in determining assessment tax-values. As selling prices go up, so do assessments, and, consequently, property taxes.
The 2022 Triennial Reassessment of Northern Cook County saw property tax assessments increase by over 30 percent on average, and the ongoing 2023 work on Chicago's South and Western suburbs so far at least equals, if not sslightly exceeds that of the year past.
According to Norada, the volume of sales shrank significantly so far in 2023, registering a massive 37% decline in April 2023 versus 2022. At the beginning of the year, prices seemed to fall by perhaps a third of that, but Crain's reported last month the downward trajectory leveled off.
"Home values have rebounded to a relatively normal 'pre-pandemic' pace for this time of year," wrote Orphe Divounguy, observing the present market. "Demand fell from a year ago, but most of the decline in demand came from existing homeowners choosing not to move. Many potential first-time homebuyers who may have been deelayed by rising prices and bidding wars are returning this spring."
Therefore, tighter inventory on the market looks to be keeping selling prices propped up. According to Norada, Chicago sales fell by a mere 1.5% after the dip in the early months of 2023. In the week of April 30, Cook County homes on average sold for 99.5% of their asking prices, according to online real estate marketplace Redfin.
Adds Norada, "The Chicago housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the United States. It is also one of the hottest real estate markets for investing in rental properties."
Such a market means the Cook County Assessor can sustain its proposed assessment increases, but Property Tax Solutions excels arguing on behalf of its clients to reduce the degree.
Across Cook County, the average property selling price presently stands at $320,000, according to The Real Deal.
New sales tend to disproportionately impact properties in the immediate area, as the Assessor's Office's formulas do their work. If the property next door receives a makeover and nets a high price on the hot market, then you might just find yourself receiving a much higher assessment than someone with a property more like yours on the same block!
Such an environment is ideal for assessment appeals, especially on a reassessment appeal. Even modest reductions to the County's proposal add up to save big dollars during the period of assessment.
Appeals can only reduce one's assessment, and, even unsuccessful appeals still provide the homeowner the peace of mind of knowing at least they paid as little as possible on their property tax bill.