NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — Reno County Appraiser Michael Plank reported to the Board of County Commissioners on Wednesday about the real estate activity in the county.
"People create value by their actions in the real estate market and we are simply reporting on and interpreting those actions," Plank said. "After analyzing over 1,200 residential sales for validation last year, we're on a similar pace for in terms of number of sales this year. We're trending to have over 1,200 sales again, just residential."
Validated sales are the ones used in the county's valuation process at the end of the year.
"Sales are validated according to the definition of fair market value found in statute, specifically 79-503(a). The average validated sales price for residential property countywide increased by a little over 6% in each of the last five years and throughout the first eight months so far in 2024, we have seen the average sales price of validated residential sales remain steady compared to last year."
Just because prices are steady doesn't necessarily mean valuations will be.
"The current real estate market continues to drive up residential values here in Reno County because inventory is still low, it's still near historical lows and demand remains high," Plank said. "Throughout the first half of 2024, sales prices have leveled off like we just said and remain steady in comparison with our 2023 sales. We do not expect to see a drop in the local housing market, especially considering the projected interest rate cuts. There are always exceptions, but for the most part, residential property in Reno County is still selling in less than two weeks and selling at or above its listing price. While the market has leveled off, preliminary trend studies for the 2024 valuation coming up here next January indicate that we are looking at another increase in property valuations."
This has more to do with the hot market in the last few years than anything.
"Here in Reno County, we utilize the last three years of sales when setting up our modeling. Using three years of sales in our modeling has the effect of keeping valuations from overreacting to fastupward changes in the market or when the market levels offer slows down, then it is equally slow in reacting to that trend as well. For this upcoming valuation cycle, we'll be dropping off our 2021 sales and modeling in our 2024 sales."
Plank said his staff has been able to resolve most of the appeals in his office.
"Staff was able to provide hard sales data, show trends, demonstrate general knowledge of the local housing market, and explain our statutory duty to value property at a figure derived from local market activity," Plank said. "Once people understand what our office does in terms of reporting on the market and to a certain extent, at least how we do it, it often answers most of these types of questions, even if they aren't necessarily happy with the answer or the results."
Reno County has once again been certified as being in substantial compliance with PVD, which is the highest rating a county can get for valuing accurately according to statute.