In the latest city assessments, Minneapolis home values are down. Though falling home prices were predicted on the North Side, where foreclosures have been rampant, home values in all areas of Minneapolis have been dropping. The average home value change is about 10 to 12 percent citywide, but in some places its been as high as 44 percent. It is not uncommon for prices to have dropped by $20,000 to $30,000.
Suburban residential property in Hennepin County is down between 9 to 10 percent. Ramsey County owners should be receiving their notices anytime now.
In most neighborhoods, occasional foreclosures in the area are not to blame for home value changes. The sheer volume of homes for sale is certainly a factor. Also, sellers wanting to move will lower their asking prices in order to sell their home and be rid of it. If this occurs repeatedly in an area, the value of homes nearby decrease, even if they are not for sale.
Some homeowners are hopeful that the lower assessments will mean paying lower property taxes. The impact of the values on taxes hasn’t been clarified, however.
Recent assessment notices reflect last year's sales and Minneapolis real estate
experts are urging homeowners not to worry. If you’re selling or refinancing, recent home sales, not the assessors estimate, will determine their real market value of your home.
At Baker & Hedges, we have never used a property’s taxable value established by the county to determine the market value of a clients’ home. In years past, if we did use this method we would be consistently under-pricing homes. During the current market, we would be over-pricing them. Evaluating recent sales of comparable homes, up to within the most recent 6 months, has been and continues to be the best way to determine a property’s value.