'They're going to freak out': Wake County lenders, realtors talk tax revaluation and possible fallout on affordable housing

Homeowners in Wake County are trying to figure out what this year's tax revaluation will mean for their family budgets.

The average residential property increased in value by 53 percent since the last revaluation in 2020. It's still too early to know whether your tax bill will go up or down or stay the same. That will be decided when county commissioners set the tax rate in June.

As of now, a lot of us have some sticker shock and wonder what these higher values mean for the future of the housing market here.

These notices of assessed value are arriving in mailboxes across Wake County right now.

Fairway Independent Mortgage lender Michael Martin wants to calm those fears from homeowners who worry their tax bill will match the increase in their home value.

"People are going to get their valuations and they’re going to freak out," Martin said. "I’ve been doing this for 22 years, and we’ve never seen taxes increase that dramatically."

The revaluation comes at a time when the cost of homeownership is higher than we saw during the pandemic - with mortgage rates hovering around 7 percent.

And now insurance companies are asking the state to raise homeowners insurance rates by as much as 42 percent.

Martin says all of that affects what people can afford when buying a home.

"Well, it’s not going to make it easier," Martin said. "But, I don’t think it’s going to make it so challenging that people should give up."

Michael Terbet has been a realtor in Raleigh for 18 years, through several revaluations.

"I saw mine today and it went up about 35 percent," Terbet said.

Terbet said we still have a less than two-month supply of homes and first-time home buyers will be the most impacted by the higher tax values.

"It’s like anything else," Terbet said. "It’s getting a game plan together that fits your budget with the increased taxes and assessed values."

Wake County commissioners could lower the tax rate to a revenue-neutral rate, which would soften the blow on your tax bills.

WRAL News reached out to all seven commissioners to see if they support a revenue neutral tax rate. Commissioners Vickie Adamson and Don Mial said they support it. Commissioners Matt Calabria and Susan Evans said the revenue neutral tax rate is a starting point for the county's budget discussions.

Cheryl Stallings said, "I will work with my Board colleagues to be as fiscally responsible as possible while also working to allocate county funding for needed programs and services for our residents."

Chair Shinica Thomas said, "I am in support of an open and easily understandable process. I am in support of keeping taxes as low as possible after consideration of the community and county needs."

Tara Waters added, "a revenue neutral tax rate is an important component of the preliminary work and a part of the process that I support ... I will be careful to consider the needs of our community as a whole and the needs of those who are most vulnerable."