As residents this week receive their tax appraisal notices, some may be surprised to see their values drop.

McLennan County Appraisal District officials said tax-base growth is unusually slow this year, and some neighborhoods are even seeing declines.

Appraisal district officials attribute the stagnant trends to a housing market hit by recession.

Two homes next to each other are for sale on Austin Avenue.
Duane A. Laverty/Tribune-Herald

“Sales are beginning to be pretty flat,” said Linda Spangler, assistant chief appraiser, whose own home value in Woodway went down.

“Not all neighborhoods went up, and not all went down. But mostly they’re very small increases,” she said.

Based on preliminary estimates, the average preliminary market value for a McLennan County homestead is $118,888, an increase of about 3 percent from last year’s certified value of $115,076.

That estimated increase may be optimistic. Preliminary values usually drop during the protest period before the rolls are certified in July.

The appraisal district is still working on estimates for the total tax-base figure, which will include commercial and industrial property.

Local government officials are waiting for those numbers to see whether they’ll be able to bring in more revenue without a property-tax-rate increase.

The appraisals reflect the estimated value of properties in January of each year. They’re based on sales of similar properties in similar neighborhoods. Property owners have 30 days to appeal if they think the appraisal is wrong.

Based on preliminary 2010 values, it appears the reappraisals had different effects in different parts of the county:

*  Midway Independent School District’s average home value increased only 0.24 percent, from $168,857 to $169,268.

*  Waco ISD saw home values increase 1.4 percent, from $89,326 to $90,584.

*  The city of Waco’s average home value rose 2 percent, from $109,574 to $111,770.

*  Fast-growing China Spring ISD saw bigger increases. Home values increased 6.9 percent, from $159,040 to $169,964.

Market still solid

Local real estate agents say Greater Waco’s overall housing market is stronger than those in other parts of the country.

“The housing market is good, and values have been maintaining,” Donna Terrase of Kelly Realtors said. Existing homes have been strong this spring, partly because of a homebuyer tax credit, she said, and she expects new construction to pick up again.

She said the appraisal district, which once was known for underappraising properties, has been overappraising properties more recently, and a correction was due.

“I think the tax appraisals were really too high, and I think they may be more in line now,” she said. “I think properties have appreciated, but not at the rates they have before.”

Credit gives boost

Earl Patrick, broker with Coldwell Banker Jim Stewart Realtors, agreed the homebuyer credit has buoyed home sales this spring.

Waco Multiple Listing Service statistics show March home sales increased from 169 in 2009 to 192 this year in McLennan County. In the four previous years, March home sales topped 200.

The median McLennan County home price in 2009 was $111,600, up from 111,000 the previous year but down from $115,500 in 2008.

West Waco homeowner James McKeown has experienced the home-value roller coaster. His home on Loma Vista Drive near the old Hillcrest hospital grew in value from $105,793 in 2000 to $139,482 in 2008. Last year, the value dropped to $93,397.

“We had no explanation of it,” said McKeown, an English instructor at McLennan Community College. “We were afraid to call and find out about it because we thought it might be a mistake.”

This year, his value went up slightly, but he said he sees no reason to complain.

jbsmith@wacotrib.com

757-5752

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