ELK POINT, South Dakota (KCAU) — The Federal Reserve raised interest rates as recently as last week, and yet, Siouxlanders are still feeling the impact of inflation in the housing market.
Sherri Bousquet is the director of equalization for Union County, South Dakota. The office assesses the value of residents’ homes. She said the increases were based on the housing market.
“They all got something and that was based on your sales ratio. We have to be 85 to 100% of sales ratio,” she said. “If you have a $120,000 assessed house and you buy it for $225,000, you divide that assessed value by what you paid for it, so that’s a 53 percent ratio.”
Tyler Erickson is the assessor for Sioux City. He said the value of a home can change even if you don’t do anything to your house and that can be a hard pill to swallow for homeowners in Siouxland.
“A lot of people don’t pay attention to the housing market when they’re not looking to sell their house. I know I don’t really except for my job, so it’s difficult to convey to some residents that the market is this much higher than what it was,” he said.
Whatever amount your home value increases by, both Erickson and Bousquet emphasized that your taxes will not necessarily increase by that same amount.
Aaron Bircher is a broker with RE/MAX Prime in Sloan. He said the housing market in Siouxland is stabilizing right now and he expects it to keep growing due to a housing shortage.
“I would anticipate more growth and I don’t think that the current rate hikes are catching up with the market,” he said. “In 2021, we had 30 percent growth in just that year alone and so this rate hike is still leaving us behind the current market value based on everything I can see.”
Sioux City residents can appeal the assessed home value between April 2-30. Residents in Dakota Dunes and the Richland township have until April 4 to appeal, but the deadline for all other Union County residents has already passed.