Arlington Real Estate Rebounds; Property Values up 6.3% Overall

* Residential values up 1.4%
* Commercial properties up 12%
* County benefits from healthy commercial, residential property mix

ARLINGTON, VA – January 17, 2011 – (RealEstateRama) — Arlington’s 2011 real estate assessments are up 6.3% overall, nearly erasing last year’s decline of 7.2%. The commercial sector, including office and apartment properties, showed particular strength, gaining 12% and nearly recouping last year’s decline of almost 13%.

Assessments for existing residential properties, including detached homes, condominiums and townhouses, are up 1.4%. Real estate assessments will be mailed January 14, 2011 to all Arlington property owners.

“Commercial lending has opened up,” said Barbara M. Donnellan, Arlington’s county manager. “We are seeing a solid recovery in property values, particularly in office properties and hotels. Arlington’s economy, which weathered a daunting recession, is now growing again. This is good news for residents, business owners and County government.”

Commercial properties rebound strongly

Arlington continues to benefit from its Smart Growth planning and mix of commercial and residential real estate. Commercial properties account for 46% of the County’s real estate tax base. Commercial market indicators, helped by improving credit market conditions, have been increasingly positive.

For the past year, commercial property, including new construction, increased in value by approximately 12%, to $26.4 billon. Some of the best performing commercial properties were hotels (up 22%) and office property (up 15%).

Residential real estate stabilizes

Arlington’s residential real estate market has proven far more stable than real estate markets in many communities across the country.  Between 2000 and 2006, residential properties in Arlington saw an average increase of 167%. In contrast, between 2006 and 2010, residential property values declined an average of 7%. In 2011, residential property values rose 1.4%.

The average assessment for existing single-family properties, including condominiums, townhouses and detached homes, increased approximately 1.4%, from $503,200 in Calendar Year (CY) 2010 to $510,200 in CY 2011.

Each homeowner will receive an assessment reflecting the value of his or her property. The 1.4% average increase is just that — an average; 28% of residential owners will see no change in their assessment; 25% will see declines of varying amounts. Of the 47% seeing increases, the amount also will vary. Changes in property assessments for 2011 reflect the diversity of Arlington’s neighborhood and housing stock.

CY 2011 assessment information will be online January 14, 2011 at 5:00 p.m. >>>Look up your property assessment.

Budget outlook

County Manager Barbara Donnellan will present her proposed budget for FY 2012 in February 2011. Donnellan has said that, her proposed balanced budget may include a mix of tax/fee increases and expense cuts to cover inflationary expenditure pressures, new facilities, and ongoing increases in school enrollment.

For more information on the budget process, visit the Fiscal Year (FY) 2012 Budget web page.

About real estate assessments

Real estate assessments are appraisals — the County’s opinions of value for each parcel of real property in Arlington. Assessments are made according to accepted methods, techniques, and standards of the real estate appraisal and assessment profession. The 2011 assessment is an estimate of the fair market value as of January 1, 2011.

Residential assessments were based primarily on neighborhood sales occurring from July 1, 2009 through June 30, 2010. The real estate tax rate determines the amount of the tax that is levied on the property. A uniform tax rate for all real property is set by the Arlington County Board.  For more information, visit the County website.

Arlington, Va., is a world-class residential, business and tourist location that was originally part of the “10 miles square” parcel of land surveyed in 1791 to be the Nation’s Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency’s highest award for “Smart Growth” in 2002. Home to some of the most influential organizations in the world – including the Pentagon – Arlington stands out as one of America’s preeminent places to live, visit and do business.

Contact:
Richard Stephenson 703-228-3412 (voice) 703-228-4611(TTY)