Colorado Property Values Decline - Legislative Council Report
Colorado property values declined this year and are expected to do so again next year, according to a report by the non-partisan Colorado Legislative Council. The Council attributes the decline to several factors, including the economic downturn and a poor real estate market. The Legislative Council assesses value on residential and nonresidential property. Nonresidential property consists of eight property classes: commercial, industrial, oil and gas, and agricultural.
Falling oil and gas prices figured heavily into the decline in all nonresidential property values, according to the report. But despite the influence of oil and gas prices, the hardest hit nonresidential properties were commercial properties?representing about half of the nonresidential category. The biggest declines in commercial property values occurred in areas that once benefited from a pre-recession boom. "This includes mountain communities, urban areas hardest hit by the recession, such as Colorado Springs, and those parts of the state impacted by the dramatic expansion and downturn in the energy industry," the report stated. Residential property values declined as well, according to the report, which was part of the December economic recovery and forecast presentation to lawmakers.
The Legislative Council expects assessed values to drop 10.4 percent in 2011, and the assessment rate for homeowners to remain at 7.96 percent through June 2013. The report attributes this decline to ?the sustained high level of foreclosures, economic downturn and tight mortgage financing market, which have put downward pressure on home prices throughout Colorado," the report said.
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