DeKalb County Property Tax and 2016 Price Trends

Posted by Jill Noelle Olandria on Mar 18, 2016 11:30:00 AM

As the DeKalb County property tax authorities and experts will agree, price trends have an impact on property assessments and, thus, on real property taxes. Values are influenced by the prevailing sales prices of similar property in the area. Comparable sales give a good indication of market value. This market value and the corresponding 40% assessed value appears on the annual notice of assessment and your tax bill. 

Here are a few things that you have to be aware of regarding the 2016 property price trends.  The more informed you are about these trends, the more likely you can anticipate the changes in the DeKalb County property tax matters.  

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Zero Growth in Prices

The buzz about the 2016 price trend started with a Morgan Stanley report that stated the commercial real estate industry in the United States will have zero growth in prices in 2016.  According to the prestigious financial institution, the net operating income of the players in the industry will likely stop its upward rise at a pace necessary to push property price growth. This is especially true in an environment of economic uncertainty. 

The researchers of Morgan Stanley, however, pointed out that there will likely be bifurcation in the price increase between the worst and best assets in certain markets. This is obviously true regardless of the economic environment as not everything will be roses even in the best of circumstances. 

Conflicting Opinions

Before falling for the Morgan Stanley predictions hook, line and sinker, you have to perform your own analysis of the matter.  You have to remember the specific factors affecting the DeKalb County property market will be different for other counties in Florida and South Carolina, and even other counties in the Atlanta metro area. The DeKalb County property tax rate, millage rate, and appeals process will be different, too. 

A quick search of the Internet about 2016 price trends in the nationwide property market will reveal conflicting opinions about the matter, especially in relation to the Morgan Stanley report. 

Based on other studies, property price appreciation is still possible in 2016, possibly between 4 and 5 percent, which is lower than 2014’s 7.5 percent and 2015’s approximate 6.5 percent. This will be due to the continued improvements in the industry’s net operating incomes across residential, commercial and industrial property types. While the multifamily sector may experience problems, strong rent growth rates will likely increase the income for the entire industry. 

The deceleration in price increases can be attributed to the very low cap rates across all property types, particularly for high-end buildings in prime locations.  Cap rates could rise however, considering the widening of spreads and the pace of future interest rate increases.  

The bottom line: You should be well aware of the impact of possible price increases on your DeKalb County property tax assessment as the Tax Assessor will use market values in the computation of your property’s appraised value.  You can challenge it, fortunately, by showing actual income and expense history of the property, rent rolls, and your own comparable sales. Contact your property tax consultant for more information.   

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