Houses see taxable value drop 18-20 percent in response to market
by Joni Astrup
Houses in Elk River have seen their taxable value drop by 18-20 percent in the last three years.
Sherburne County Assessor Jerry Kritzeck said his office has adjusted the values for taxing purposes in response to what homes have been selling for in Elk River. Land values have also been adjusted. Kritzeck said the taxable value of residential lots in Elk River has been dropped by about 20 percent.
He spoke at the Feb. 16 meeting of the Elk River Citizens League at Perkins in Elk River.
The average sales price of a single family home in Elk River fell from $232,709 in 2008 to $223,000 in 2009 and finally to $200,600 in 2010, he said.
“For many, many years everything was going up, up, up,” Kritzeck said. “And then we know what happened. The bubble burst around 2008 and then it started coming down.”
Audience member Dan Anderson asked Kritzeck if he thinks the sales price has bottomed out.
“At the end of this year I feel we’re bottoming out,” Kritzeck replied.
The descent in home values is slowing and the number of homes sold is rising, he said.
Foreclosures, meanwhile, continue to plaque the area. Sherburne County is one of the leading counties for foreclosures, he said. There were 703 foreclosures in Sherburne County in 2009 and 757 in 2010.
“They do have a downward effect on the overall market,” he said.
Home building remains sluggish as well.
There were 85 permits issued for new single family homes in Sherburne County in 2010. That compares to 87 in 2009, 109 in 2008 and 326 in 2007.
“2008 is kind of when things started really going the other way,” Kritzeck said.
He also talked about the changes in values of agricultural land and particularly those directly affected by modifications made to the Green Acres program by the Minnesota Legislature. There is a drive on in the Minnesota Legislature to modify those changes.