Archive for Wednesday, March 3, 2010

De Soto valuation decreases 5.3 percent in last year

March 3, 2010

For the second-consecutive year, the recession and housing slump hammered home values in De Soto.

The Johnson County Appraiser's annual report shows in 2009 appraised valuation fell 2.81 percent countywide and 5.3 percent in De Soto. That was had the largest decline of any city in the county and reflects a collapse in the sale prices of single-family homes in De Soto in the last year.

The county appraiser's office found the average sale price of a home in De Soto fell 21.93 percent from $212,417 in 2008 to $165,842 in 2009. The average appraised value of a De Soto single-family home fell 4.44 percent from $193,834 to $185,221.

Of De Soto's 1,530 existing homes, 1,278 decreased in value, 213 showed no change and only 45 saw an increase 2009 valuation.

Although the value of new construction isn't broken out in De Soto, it can be assumed with only single-digit housing starts in 2009 the city experienced the same consequences to valuation as did the county.

New construction contributed only 1.22 percent to the county's total $51.7 billion valuation compared to the 3 percent to 4.15 percent it added in the county during seven years of the past decade. The report characterizes as "unprecedented" the 700 new single-family homes built in the county during the last year. "From 1990 to 2005, the county typically built 3,000 to 4,500 hame a year. Since 2005, there has been a steady decrease in new construction. The number of new homes have decreased; and just maybe, the new construction cycle will begin in the next year or so," the report states.

De Soto City Administrator Pat Guilfoyle said the report confirmed the feeling that this would be an even more challenging budget year than 2009, the first full year of the recession.

The city lost more than $2.5 million in assessed valuation in the last year, Guilfoyle said. Although the other two pieces of the property tax equation, personal property and state assessment on railroads and utilities, aren't yet available, Guilfoyle is conservatively estimating the city will see a 20 percent decline personal property and 10 percent is state assessment.

Should that prove true, the city would see an overall decline in assessed valuation of about $2.5 million. That would equal $59,000 less in revenue for the city's at its current mill rate, Guilfoyle said.

"In the overall scheme of things, that's not the end of the world," Guilfoyle said.

The city finished 2009 in better financial shape than it entered the recession year, and its 20 percent reserve will help it weather the the next year, Guilfoyle said.

The city's 2009 sales tax revenue while down from 2008 but was more than budgeted, Guilfoyle said. With two straight years of valuation decline, it would be important it didn't fall off significantly in 2010, he said.

Valuation numbers for school districts weren't broken out in the report, but it would appear USD 232 will also see an overall valuation loss. The 6,022 improved parcels in the Multiple Listing Service area of west Shawnee recorded a 1.22 percent loss in value in the last year. The report also shows the square foot value of residential homes in De Soto USD 232 fell from $116 in 2008 to $114 in 2009.

The numbers in the report are preliminary and will change as home and business owner challenge valuations.

With notices of valuation mailed March 1, home and business owners will have 30 days to file an appeal with the Johnson County Appraiser's Office, 11811 S. Sunset Drive. Suite 2100, Olathe, KS. More information can be found at appraiser.jocogove.org or www.jococar.com.

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