Sales flat with county assessments
By Greg Pearson STAFF WRITER

Lisa Billings/Chesterfield Observer This five-bedroom house in Bexley sold last month for $400,000, 4 percent above assessed value.

An analysis done by the Chesterfield Observer for March 2008 real estate sales shows new and resale homes in the county are selling for just an average 1.4 percent higher than their assessed value. During 2007, homes were typically selling for about 10 percent higher than their assessed values.

Excluding land sales, commercial properties and new homes that sold before their values could be assessed, there were 298 homes that sold in March for a total value of $80,580,278. Those Chesterfield homes were assessed at $79,450,600 - a difference of $1.13 million.

That's not much different than an analysis done by the Real Estate Assessor's Office for the 564 sales of homes and residential land without homes during the Jan. 1-Mar. 12 period. "We showed a loss of about 2 percent [compared to assessed values]," said Director Jonathan Davis. "That's why [County Administrator Jay] Stegmaier was concerned."

The sale price of an average existing home sold for 3.8 percent more than assessed value during Jan. 1-Mar. 12. But new homes and residential land without houses were selling at 3.1 percent below assessed value. With the slowing real estate market, new homebuilders have begun offering promotions to increase the sales of new homes.

The most active neighborhoods in the sale of homes last month were Charter Colony with 32 and Watermill with 15. Brandermill recorded 12 sales followed by Five Forks (eight) and Deer Run and Birkdale with six each. Ashbrook, The Grove, The Highlands and Woodlake had five sales each.

Pricey neighborhoods were not immune to selling below assessed values. In Woodland Pond, a 3,340-square-foot home assessed at $441,800 sold for $429,000. A home assessed for $1,094,700 in Founders Bridge sold for $44,700 less. In Tarrington, one home in the Welby neighborhood sold for just $6,000 less while another sold for $43,200 more than assessed value. All four home sales in Salisbury sold for above assessed value. To see all of the real estate transactions for March (and previous months), go to www.Chesterfield Observer.com and click on "real estate" on the left-hand side of the homepage.

Because ever higher real estate assessments have been creating enough funding for double digit percentage increases in Chesterfield's budget, now a concern about future spending has the county's Budget and Management Department devising ways to delay spending - if necessary. Previously, prices were holding steady even though the number of real estate transactions has dropped dramatically (see chart).

On Apr. 9, the Chesterfield Board of Supervisors adopted its FY09 budget (starting July 1) and dropped the property tax rate by 2 cents per $100 of assessed value. Stegmaier had already warned the board that home prices were flat with assessments based on Davis' data. Chesterfield is arriving late to the real estate downturn.