Property values fall in east metro

Most east-metro taxpayers will notice that their property values have gone down again in the eyes of their local governments.

The total market value of properties in Ramsey and Washington counties has declined by 6 percent and 7.5 percent, respectively, according to assessors' reports. It continues a theme established last year after the real estate collapse. In much of the past decade, properties saw widespread increases in worth.

Keep in mind that just because a property value goes down doesn't mean the tax bill follows suit. Local governments will figure out budgets and how much property tax money to collect later this year.

Those who see smaller declines are likely to see an increase in their tax bill for 2011.

Ramsey County sent out its valuation notices a few weeks ago. Washington County began mailing notices last week. Those values will be used to establish taxes due in 2011, although tax rates won't be set until the end of the year.

Residential values in Scandia, Hugo and Newport fell more than 10 percent over the period from October 2008 to September 2009, said Kevin Corbid, the county's director of property records and taxpayer services.

Values in Grant, Lake St. Croix Beach, May Township and St. Mary's Point stayed flat or had small reductions.

The median value of a house in St. Paul dropped from $167,400 in 2009 to $154,400 in 2010. In suburban Ramsey County, the median home value in 2009 was $210,800. In 2010, it's $200,400.

Not a single St. Paul neighborhood saw an increase in residential values. The median values of homes in the Payne-Phalen neighborhood dropped by 17.4 percent.

It appears the residential real estate market is showing some signs of improvement. Housing prices are more affordable now than in recent years, interest rates are still low and houses are moving faster than they have been -- all signs that point to a potential for recovery.

But it's still too early to say the problems of the past few years are over, Ramsey County Assessor Stephen Baker wrote in his report.

Commercial property values dropped by about 9.65 percent in St. Paul and by 7.4 percent in Ramsey County suburbs.

There's a showdown between sellers, who appear to be holding onto properties to weather the storm, and buyers, who are waiting to snap things up at rock-bottom prices. "It remains unclear which side will make the more significant move, or move first," Baker wrote.

In Washington County, overall commercial values decreased on average by 7 percent. Woodbury took the biggest commercial hit at 12.6 percent. "That's reflective of the large big-box-type of operations," Corbid said. Woodbury is Washington County's largest city and has the greater share of economic firepower.

How to challenge

Remember, the amounts on valuations sent this year will be used to determine next year's tax bill.

"People should look at their value notices to make sure they accurately reflect the value of their property," Corbid said.

Ramsey County will hold "open book" meetings Monday through Thursday this week for people to meet with appraisers and talk about their property values. The meetings will be from 10 a.m. to 7 p.m. at 90 W. Plato Blvd., St. Paul. For more information, go to www.co.ramsey.mn.us/prr/index.htm or call 651-266-2131.

Washington County will hold similar meetings on Wednesdays and Thursdays this month. Locations vary, so check with the county. For more information go to www.washington.minnesotaassessors.com or call 651-430-6175.