Property Values in Palm Beach Experience Boost
Home values in Palm Beach County are spiking but homeowners might end up paying more property taxes.
According to Gary Nikolits, the county’s property appraiser, taxable property values are expected to rise at about 3.7 percent this year. The increase was almost 1 percent higher than the original estimate in April.
The increase in the county’s taxable property values is also a sign that the real estate market is starting to stabilize and is moving toward the right direction.
Nikolits added that the values of homes located at the southern areas of the county are also experiencing increase. A 3.8 percent increase was assessed in Boca Raton. On the other hand, Delray experienced a 6 percent increase while Boynton Beach a 5.5 percent jump.
The median home price in Palm Beach also increased by more than 20 percent in April, according to the Realtors Association of the Palm Beaches.
Single-family homes have a median price of $265,000 while condos have $108,000, a 26 and 20 percent increase, respectively.
The increases are products of increased demand, decreasing supply of homes and record-low rates.
The expected rise in property values will provide a boon for the county government, giving around $20 million in tax revenue. That is, if the tax rates stay on the current level.
Yet even with property values increasing and giving millions in revenue, the government is still advised to put a ceiling on their spending and mitigate the effect of tax rate increase on the taxpayers.