Lexington, KY - Fayette County continues to weather the economic and housing market downturn better than many areas. While declines in the number of houses sold continue each year, median sale prices have remained mostly stable and have actually risen slightly. Government, higher education and the healthcare industry are among the leading employers in Fayette County, helping to insulate the local economy from the recessions seen in cities that depend more heavily on manufacturing.
Due to a lack of comparable sales and the stagnant economy, there has been no wholesale, upward reassessment of any neighborhood in Fayette County for the second consecutive year. However, during this same time period, the property tax roll in Fayette County has continued to grow, albeit at a very modest rate - less than 2 percent per year. This growth is attributable to property sales, improvements and technologies implemented in the PVA office that have allowed us to discover improvements not previously listed on the tax roll.
The accompanying chart is a snapshot that compares home sales in individual neighborhoods from 2007 through 2010. Readers are cautioned against drawing conclusions about overall property values in specific neighborhoods. The numbers of sales in each area represent very small sample sizes. One or two sales in which a homeowner realized an unusually high capital gain or loss would cause anomalies in such a small sample, making the percentage of change misleading.
The transactions represented in the data are residential property sales that the PVA office has determined to be "arms-length transactions," or the sale of property which has been on the market for a reasonable period of time, from a willing seller to a willing buyer. The data does not include transactions involving transfers of property between family members, foreclosures, refinancing records, or other atypical sales; nor does it include commercial and multi-family dwellings.
While housing prices have fallen in some neighborhoods over the last few years, there are many examples of neighborhoods that remain highly desirable in which median sale prices have continued to climb. Examples include Chevy Chase, Montclair, Shadeland and Lansdowne to name but a few.
The Property Valuation Administrator (PVA) is required by statue to inspect each parcel of real property in the county once every four years. Additionally, the PVA is required to evaluate property assessments annually, and adjust individual assessments when sale prices in their respective jurisdictions are 110 percent or greater than current assessments. Typically, but not always, reassessments occur every four years when the physical inspections occur. The chart also indicates (denoted with an asterisk) which neighborhoods are up for inspection and possible reassessment during the upcoming tax year.
If a homeowner does not agree with their property assessment, they have the right and are encouraged to contact the PVA office. In Fayette County, the PVA office is currently working on assessments for 2012. If the assessment of a property changes in 2012, the property owner will receive a notice by mail in mid-April. In the spring, beginning on the first Monday in May and continuing for 13 consecutive days, property owners may conference with the PVA and discuss their assessments. If, after the conference, the property owner remains unsatisfied with the assessed value, they are encouraged to appeal to the Local Board of Tax Appeals.
David O'Neill is the Fayette County Property Valuation Administrator. All of the information originated with the Fayette County PVA's database. PVA data and information on challenging your property assessments and the work of the PVA is accessible at www.fayettepva.com.