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METHUEN — The value of Bob Miller's home dropped $70,000 in the last year alone, according to the city's latest property assessments.
Assessors inspected and updated the values of every property in the city this year — something done only every 10 years. The state Department of Revenue still needs to approve the assessments, but preliminary data shows that for the most part, homes have lost value.
Some parcels dropped small amounts or even gained some value, while other homeowners like Miller saw their assessments plummet.
Miller, of 9 Clinton St., has no plans to sell anytime soon, so luckily for him, he doesn't have to stress about losing money in the process.
"If I'm not moving, it doesn't matter," he said.
The average Methuen home is now worth $295,720. If the state approves the new property values, it will be worth about $283,070, according to city auditor Thomas Kelly. That's a drop of $12,651.
Methuen isn't the only community with dropping property values.
"It's happening nationally," said Linda Kody of Kody & Company, a North Andover-based real estate firm. "Actually, Massachusetts is one of the better states."
And though this isn't a great time to try to unload a home, Kody said it's "an awesome time to be buying."
Every year, assessors review home sales and use that information to adjust property values to reflect the market. They complete a full revaluation every three years, which involves researching sales, issuing a preliminary certification of property values, and giving the public five days to review the values and request a hearing.
Every 10 years, the assessors go door-to-door to look at properties and reassess them. This year, Methuen hit the 10-year mark and the three-year mark at the same time, explained John Cena, the city's municipal appraiser.
The new assessments are based on sales in 2007, and not this year, Cena said.
Miller bought his house on Feb. 3, 2003, for $249,000, according to city records.
Its value increased dramatically in the following years, to the point where it was worth $363,900 for this tax year. Miller said he added onto the home, and the area saw rising values for a while.
Under the new assessment, Miller's home will be worth $293,800. Property values for other homes on Miller's street are all over the map. One home dropped $64,500 in value, another dropped $40,000, and others dropped around $4,000. One home on the street dropped only $200.
Various factors make values fluctuate.
"People put additions on — decks, garages, pools, finished basements," Cena said.
The value of a person's property determines how much the owners pay the city in property taxes. The City Council sets a tax rate, and the rate is used in a mathematical equation to determine what people will pay.
The residential tax rate is now $10.25 per $1,000 of valuation. So someone with a home worth $295,720 — the average — paid $3,031 in property taxes this year.
But just because your property value dropped, it doesn't mean you'll pay less in taxes.
The city still needs to raise enough from taxes to be able to function, so the City Council is likely to raise the tax rate to cancel out the drop in property values. If it kept the tax rate the same, people who saw their home values drop would see their tax bills drop. But then the city would lose money.
"You still have to raise the same levy," Cena said.
He hopes the council will set the new tax rate in the second or third week of next month.
People may see their taxes increase, but not by much, Mayor William Manzi said.
The state will now decide whether to certify the values. Once they have been certified, the City Council can set the new tax rate.
Don't agree with your assessment?
Anyone who thinks their assessment is off can download an application for an abatement from the "assessing" page on the city's Web site, www.cityofmethuen.net.
