Property Values Going Up

The Sentinel reports the good news that Fitchburg's property values are going up again this year. That's nice in a couple of different ways. For folks who consider their home something of an investment, it's good to see the investment grow. For the city as a whole, it's a small sign of progress or strength or something comparable.

However we've grown a little, let's say, skeptical of the city's property values. In under three years, the city valuation of the Save Fitchburg palace has increased about 50 percent. A recent assessment didn't match that increase in market rate, which was closer to 28 percent. We'll take 28 percent, but it isn't 50.

Home sales in the neighborhood around the Save Fitchburg palace have been a little scattered lately. Some places have gone for surprisingly high numbers, while others have been a bit low in our opinion. We're not market experts, but it seems like there's some fluctuation in the market.

We figure no matter how hard Dean Tran tries, the city will max out its 2.5 percent increase this year. (We argue that as the city struggles to find money, it should max it out for now, but we know many disagree.) That said, our personal portion of that 2.5 percent is based a lot on the city's valuation of our property (and somewhat by the residential-business split, another lengthy discussion for another day). As we watch prices in our neighborhood hold steady this year, we wonder how much of an increase we'll see in our valuation.

Increasing property values aren't really a bad thing, and on their own don't lead to increased taxes (remember, the city can just adjust the tax rate to meet its target figures). But there's an issue of fairness at play here -- properties that legitimately are increasing in market value should have that reflected, while those that are not increasing rapidly should reflect that also. If condo values are skyrocketing, that should be part of the equation with single-families slow down.

We're just one of thousands of homeowners in Fitchburg, but it's unlikely (and a recent assessment backs this up) that the Save Fitchburg palace is worth 50 percent more now than three years ago. The city needs to make sure it does a fair and accurate job in figuring valuations. Increases are good, but they need to reflective of the true market, or they'll only tick off the masses.