The general decline in Delta County home values that began in 2008 is still trending downward. From 2010 into 2012 the trend accelerated slightly.
Values for Delta County commercial real estate and for vacant land also continue trending downward from their 2008 highs.
The story of values for the three classes of real estate is displayed in a chart provided by the county assessor's office.
A fourth class of county real estate that isn't shown on the graph is irrigated ag land which actually went up in value for 2013, said Debbie Griffith, county assessor. The reason is mainly due to higher commodity prices. Mesa and Montrose counties have also posted higher irrigated ag land values.
The chart shows real estate value trends as compiled by the assessor's office beginning with 2004 and continuing to June 30, 2012, which was the sale date cutoff for the assessor's most recent round of revaluations. Many homeowners have seen lower values reflected in the property valuation notices they received from the assessor recently.
From 2008 into 2012, residential property values declined on average about 20 percent as represented by residential sales in the county's biannual revaluation. As of the assessor's 2013 valuation, residential values were barely above their 2006 levels.
Distress sales of residential property continue to be a major factor in declining home values. People who are able to hang on to their property through economic and market declines don't suffer the shock of realizing "paper losses" when selling their real estate investments. However, others who can't withstand the declines in a tough economic environment are forced to sell at lower prices, or simply to walk away from their investments.
Thirty-one percent of the 283 residential property sales in the assessor's 2013 revaluation listed a financial institution as the seller, an indicator of foreclosure sale rates.
In Montrose County the story was the same. There, financial institution sales comprised 30 percent of sellers in residential transactions for the 2013 valuation.
Residential value declines in Montrose County were greater than here. The City of Montrose reports that the market appreciation experienced there between 2003 and 2008 has been "all but erased." Montrose County residential values have dropped back to their 2004 levels.
Vacant land, considered a speculative investment, has posted the greatest declines. Loans on vacant land are very difficult to get, Griffith said. In addition, there is a big oversupply of building lots in Delta County left over from the "housing boom," and there have been foreclosures on entire subdivision developments both here and in Montrose County.
Montrose County has experienced declines in commercial and vacant land values also; but, those declines have been greater than in Delta County. Montrose County commercial values are also below those of 2006, and vacant land values in 2013 are 20 percent below those of 2004.blog comments powered by Disqus