Baltimore?s real estate market is paying uneven dividends for homeowners in some of city?s more affluent neighborhoods.
Hit with skyrocketing assessments that many say overvalued their homes, the growth in prices that was a boon for many has now become a bit of a burden.
“The good news is our houses have appreciated, but the bad news is so have the assessments,” said Adam Miesner, 30, a stockbroker from Mount Washington whose home assessment has more than doubled.
“The market has pulled back, and unfortunately it seems the assessments have been done when prices were at their absolute peak,” he said.
From the third quarter of 2005 to the third quarter of 2006, the average sales price of a home with the zip code of 21209 ? which includes Mount Washington ? has fallen 12 percent, said Robert Cushner, a real estate appraiser who lives in the neighborhood.
“I would assume we would probably have similar numbers in the fourth quarter,” he said.
The state assesses all properties every three years, evaluating one-third of them each year.
This year, nearly 65,000 city properties were assessed, including homes in high-price areas such as Guilford, Mount Washington and Homeland, said Bill Stansbury, state supervisor of assessments.
Stansbury said that despite the rising assessments, there are safeguards in place to cushion the blow, like the 4 percent annual property tax cap in the city.
“It?s important that people remember there are caps in place,” he said.
But Cushner said that for people trying to buy properties now, the caps don?t apply.
“I just sold a home for $330,000 and the assessment came in $400,000,” Cushner said. “The discrepancy means that an appeal would probably be favorable to the homeowner in that situation,” he said.
City Councilwoman Ricki Spector, whose 14th District includes Mount Washington, said the problem is not the assessments but the city tax rate, which needs to be lowered.
“If we don?t lower the tax rate, we?re creating a barrier for people who want to move into the city,” she said. “Lowering the tax rate is going to be a priority of [Mayor Sheila Dixon?s] administration.”
