Despite falling home prices in Lynchburg, assessed values increase

Lynchburg’s real estate market remains slow, but home prices have not fallen enough to affect the new assessed values of property in the city.

Effective today, the taxable value of property in Lynchburg rises 5 percent, based on the city’s analysis of property conditions and real estate sales. Some of the city’s smaller and less-expensive homes had the biggest jumps in value.

When the new assessed values were announced in March, city staff faced some public outcry for raising real estate values when it is hard to sell property. “I think people were scared about what the real estate market would do,” said Greg Daniels, city assessor.

The sales data that has come in since then indicates that the assessments are not far off. Daniels said that on average, properties have been selling for about 96 percent of their assessed value. That includes properties of all classes.

Some properties, including expensive homes, usually have been selling for less than the assessed value. Meanwhile, homes valued at $120,000 or less have been selling for 10 percent over the assessed value, Daniels said.

The number of sales continues to be lower than in previous years. From March 1 to June 25, the latest sales date in the city’s database, 188 single-family homes sold in Lynchburg. In the same time period of 2008, 333 homes sold.

The average home price from March 1 to June 25 was $156,555, about 1.5 percent lower than the average price in the same period of 2008.

Daniels said he has fielded phone calls from several homeowners who said that there are so many homes sitting on the market for so long that raising assessments can’t be right. However, the assessed value is based on what actually has sold, Daniels said.

Several conditions exist that could help the real estate market pick up in Lynchburg, Daniels said. “The interest rates are good. I don’t think we have too much supply on the market. Hopefully things will pick up soon.”

He said property owners appealed the city’s assessment of 1,212 parcels, and about 28 percent of appeals resulted in a change in the assessment after the city re-examined the properties’ condition. The Board of Equalization, which takes assessment appeals after the city’s appeal deadline, received about 50 appeals, Daniels said.