2023 property taxes will be based on the real estate market conditions and sales from the 2022 calendar year. Your home must be appraised as of January 1 of each tax year.
Learn more about how 2022 sales data from Dallas-Fort Worth informs your tax appraisal and our 2023 protest strategy.
Dallas-Fort Worth 2022 market data
The Texas A&M Real Estate Center published 2022 market data for the DFW Metropolitan Statistical Area. The 2022 sales activity is what will be used to value your property on your 2023 tax statement. The average sale price for a DFW home in 2022 was $484,705, compared to $423,366 in 2021. The median sale price was $400,000 in 2022, compared to $346,000 in 2021.
In 2022, inventory increased, and the number of days on market increased. Pricing has reflected this change, as evidenced by the slowdown in average market value growth rate.
Annual data may suggest a market increase, but it is important to consider the monthly sales data to ascertain an accurate reflection of value as of January 1, 2023. Median sales price peaked in May 2022, and then declined in subsequent months.
January 2023 median value was less than the annual median value for 2022, at $375,000. January 2023 median value was closer to what we saw in January 2022.
DFW median sale prices from 2021 through Q1 2023
What this chart shows:
- The star represents the median value for DFW as of January 2023 at $375,000.
- The thick blue represents 2021.
- The thin blue line represents Q3 and Q4 2022. It was flat, not increasing.
Appraisal Review Boards (ARB) were well aware of increasing values through 2021 and the first half of 2022, and that is why last year’s appraised values were so high.
What sales data means for property tax protests
Part of our 2023 protest strategy is to remind the ARB that the appraisal districts erroneously applied increasing market adjustments for the entire year in 2021, and that is why the districts over appraised so many properties last year.
We also intend to warn the ARB that all gains in the first half of 2022 have been lost, and that January 2023 appraisals should dutifully represent the clearly declining market conditions based on the following evidence:
- Home sales decreased in the second half of 2022.
- Number of days on market increased 4X, from 6 days in May 2022 to 28 days in January 2023.
- Median price per square foot decreased 10% from $218 in May 2022 to $189 in January 2023.
Appraisal districts must acknowledge the decrease in third and fourth quarter price per foot when they apply the January 1 appraisal date for 2023 tax valuations.
Remember, your property taxes in 2023 will be based on the real estate market conditions and sales from the 2022 calendar year. Based on current home prices, property taxes should be comparable to the 2022 tax year; however, we don’t know if appraisal districts will increase values despite market data.
As your property tax consultants, it is our job to utilize market data to represent your case.
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