MOUNT PLEASANT — House and condominium owners in Mount Pleasant may have taken a second look at their property assessments after receiving them in the mail during the last few weeks.
Mount Pleasant Village Assessor Dan McHugh said 2018 was “a pretty extraordinary year” in real estate.
“In my 25 years of experience, I’ve never seen mark values change the way they have around here as they did in 2018,” McHugh said to the Village Board on May 13. “Residential property values have been extraordinarily strong across the village. We’re seeing market values increasing in access of 9%, some condominiums values exceeding 13% with some specific condo complexes seeing sale prices in excess of 30% above their assessment from 2018. ”
McHugh said commercial values are very strong with commercial real estate office and retail vacancy rates below 2%; industrial and warehouse properties vacancies are below 5% “with only the older, less desirable properties seeing significant vacancy.”
McHugh added commercial values are have increased by approximately 6%.
“We also saw significant new construction and higher land use,” McHugh said. “We have new construction of approximately $100 million in the commercial class so that’s going to increase the commercial tax base by about 13%.”
Residents can call the village to discuss their assessment until June 1 and can appeal assessments to the Board of Review starting on June 17.
Residents are going to be seeing significant increases in their property values but at the moment it’s unclear how that will affect people’s taxes.
“You will see some tax changes in those areas but it should not be as dramatic as the increase in the assessment,” McHugh said.
Village President Dave DeGroot said the increase in the property values is a reflection of the realities in the marketplace when it comes to homes.
“Our little corner of the world, southeast Wisconsin, was one of the very last places to dig itself out of the 2008 recession,” DeGroot said. “We’re finally starting to see the realities of the market, the supply and demand situation.”
DeGroot added that he did not know how this would affect taxes in the coming year.
“It’s way too early in the game, we haven’t set forth a budget yet,” DeGroot said.
Not related to Foxconn
For those wondering what the impact of the Foxconn development is on the increase, McHugh said it’s not that much.
“For residential properties, it’s 100% based upon sales that have occurred between arm’s length seller and arm’s length buyer,” McHugh said. “We’ve talked to hundreds of people who have bought and sold properties in the last year and very, very few of them have sales to people directly attributed to people for Foxconn.”
The village has been purchasing land for the Foxconn development at 140% assessed property value.
McHugh said the assessment increases are more connected to a nationwide “structural deficit of housing.”
“Since the (2008) crash until today, we really haven’t really added any new supply of homes,” McHugh said. “Yet the demand has risen pretty substantially. And supply and demand always win in real estate, and that’s going to cause prices to spike. And that’s happened from coast to coast; it’s not just a Mount Pleasant issue, it’s not just a Wisconsin problem, it’s Maine to California.
“It’s much more related to that than anything related to Foxconn.”
“In my 25 years of experience, I’ve never seen mark values change the way they have around here as they did in 2018.” Dan McHugh, Mount Pleasant village assessor