Residents in Williamson County, Leander, and Cedar Park should see their home valuation increase when they receive their home appraisals this month. In 2021, home values rose 17%, making it the largest increase to date. The increase from 2021 to 2022 will double that 17%. The Chief Appraiser for the Williamson Central Appraisal District said the increases could be as high as 40%.
Why Are Home Valuations Increasing?
The increase can be directly related to the housing market because of low home inventory and high demand driving home prices up. The increases in home sales prices and property values could affect property taxes in the upcoming year. The plus side is the increase in home valuation will most likely not match the increase in home value thanks to homestead exemptions and limits on how much revenue a taxing entity can make from property taxes in a single year.
Homestead Exemption
A homestead exemption lowers a homeowner’s property tax by removing part of the home’s value from the taxations. Property taxes will be based on the home’s appraised value minus the homestead exemption. For example, if your home is valued at $300,000 and you qualify for a $10,000 homestead exemption, you will pay taxes on a home worth $290,000. In Texas and Williamson County, homestead exemptions are $5,000 or 1% of the home’s value, whichever is greater.
Leander and Cedar Park Home Prices
Home prices in Leander and Cedar Park increased, according to the latest data from the Austin Board of REALTORS® report. Leander homes were priced at $492,950 in February of 2022. This year, they’re now at $504,137, a 5% year-over-year increase. In February 2021, Cedar Park homes were priced at $446,669 in 2021 and are now $589,127. Leander and Cedar Park both had 0.1 months of inventory. Cedar Park properties for sale spent 25 days on the market, while Leander properties were snatched up in 16 days!
If you want to buy a home before the prices increase again, contact us!