Housing Market Shows Modest Growth
For Release: August 15, 2007
Contact: Carrie Templeton, Executive Assistant, (608) 266-6466
MADISON – Wisconsin property values are showing modest growth, according to the Wisconsin Department of Revenue's Equalized Values Report released today. Residential property values statewide increased $20.66 billion (6%) between January 1, 2006 and January 1, 2007, demonstrating that home ownership still remains a worthwhile investment.
The Office of Federal Housing Oversight (OFHEO) estimated that existing Wisconsin homes increased in value by 3.49% statewide. The Department of Revenue's Equalized Values Report shows residential property values actually increased by 4%, which excludes new construction. If new construction is included, the overall increase in value is 6%. Nationally, the increase in residential property values hovers around 4%, marking a positive outlook for Wisconsin keeping pace with the nation. The Legislative Fiscal Bureau had anticipated a growth in value for existing homes of 2.7% for this time period.
"In the current market climate, we are very pleased to see Wisconsin is still growing at a moderate pace as a whole", stated Department of Revenue Secretary Roger M. Ervin. " Unlike many states, Wisconsin 's property markets have not been subject to dramatic fluctuations in values, which is good for property taxpayers, local governments and the economy."
In addition, the report shows commercial and manufacturing property statewide showed continued strong growth in new construction. The commercial class had 4% growth due to new construction, or $3.3 billion. The manufacturing class also had 4% growth due to new construction, or $423 million.
Commercial property increased by $6 billion (7%) and manufacturing property increased by $380 million (3%) over the previous year. The 3% increase represents a doubling in value increase over the prior year's values.
In addition, recreational and waterfront properties in many Wisconsin communities, often undeveloped land, continue to show growth. Undeveloped, Agricultural Forest and Forest lands have shown increased values overall by 6.02%, 6.28% and 7.54%, respectively.
This year's growth increased Wisconsin 's total equalized property values to $498 billion, a 6% increase over the prior year. Growth in equalized value does not necessarily translate into higher property taxes. Equalized values are calculated annually because of the need for a comparable value base to administer an entire property tax system for levy purposes. This ensures statewide fairness and equity in property tax distribution.
For an electronic version of the Equalized Values Report, please visit the Department of Revenue's web site at www.revenue.wi.gov
Reports available on the web site include:
- Changes in Equalized Values by Class of Property
- County Rankings – Growth in Equalized Values
- Changes in Equalized Values for Selected Cities
- History of Equalized Values (all property) since 1959
- Statement of Changes in Equalized Values (Report 2) – Full Report by County and Municipality
Last updated August 15, 2007