Property values increase 6 percent statewide

Daily Sun staff

State officials say the total value of Nebraska property increased nearly 6 percent over the past year, with sharp spikes in farm land offsetting lackluster growth in residential property values.

The figures released Friday by the state’s Property Assessment Division show that property valuations increased by $7.2 billion from 2007 to 2008.

In the Sunland area, the total value of real property increased from slightly more than 5 percent in Johnson County to nearly 12.2 percent in Pawnee County. In other area counties, the total value of real property increased by 7.93 percent in Gage County, 7.66 percent in Jefferson County and 8.26 percent in Saline County.

Statewide, existing property increased in value the most �” about 4 percent, accounting for $4.9 billion of the total statewide increase. The rest of the value increase came from new construction.

Rising agricultural land values are a big reason for the overall increase of 6 percent. High prices for corn and soybeans have driven farm land values up.

The 10 percent increase in the value of farm land is the largest in at least six years and makes up more than a third of the 6 percent overall increase in land values, said Cathy Lang, the state’s deputy tax commissioner.

The value of residential property, meanwhile, went up only 1.7 percent. That’s the smallest increase since the state began tracking the figures in 2002.

“You can see the slowdown of the market in that number,” Lang said.

The slowdown in Nebraska isn’t nearly as bad as some states, Lang said, where the national mortgage crisis has caused residential values to drop by double digits.

Some homeowners see a downside to higher property values because they often result in higher tax bills, unless local governments decrease their tax rates.

While residential values grew at a snail’s pace, the 6 percent total increase is similar to what Nebraska has experienced the last six years. The average, annual increase in total value over the last six years has been 6.8 percent.

“I think we’re on par with the Midwest region,” Lang said about total growth over the past year.

No Nebraska counties saw a decrease in their total land values despite residential land values decreasing in 14 counties.

The statewide property values could change because property owners will have the opportunity to appeal changes in their land’s value.

The Associated Press contributed to this report.