Home owners in the metro area are likely to see the value of their homes go up in this years assessment. The assessors offices of the City of St. Louis, St. Louis County, and St. Charles County are all reporting initial assessments that show that the pandemic and lockdowns have done little to slow down the hot local market.
Counties in the state reassess local property values on odd-numbered years. With the value of homes rising, this could result in a corresponding hike in property taxes for many homeowners, as occurred in the last assessment back in 2019. The county assessors have to complete their assessments by July 1. People can formally appeal the assessment on their property, if they believe it to be made in error.
According to initial assessments, things are looking good for residential real estate. St. Louis and St. Charles counties are both estimating around a 9% increase in value on the average home, while the city of St. Louis is projecting an increase of around 5%. Of course, these numbers will vary a lot depending on the neighborhood, but it is a strong indicator of just how hot the local housing market continues to be.
The greatest increases in value were seen in homes priced at or below $200,000. This is good news for homeowners, as some neighborhoods are seeing double-digit appreciation. There is some concern, however, regarding lower income families or first-time homebuyers getting priced out of the market.
Things are looking a bit worse in commercial real estate. The pandemic hit particular industries very hard. For instance, the value of hotels in the city is estimated to depreciated by an average of 20%. In both the city and St. Louis and St. Charles counties, the overall value of commercial real estate is projected to go down by 1-2%, or at best remain flat.