Lee County valuations see sharp increase
Property valuations in North Fort Myers, like those across Lee County, continue to rise.
According to the estimated valuations report issued by Lee County Property Appraiser Ken Wilkinson, property values had their sharpest increase in seven years, with Cape Coral and Fort Myers again leading the charge.
According to a preliminary report, Lee County property values increased by 5.48 percent, to an estimated overall $57.61 billion, up almost $3 billion from last year’s $54.62 billion.
That’s the biggest projected jump since 2007 during the tail end of the real estate bubble. And for the first time in years, all taxing districts saw an increase.
In area fire districts, Bayshore, which is considering a new fire assessment, saw a 3.58 percent increase, while overall taxable valuations in North Fort Myers went up 3.09 percent.
Any potential revenue increase from the increased valuation for Bayshore, though – assuming the assessment is voted down by voters on June 24 -? would be miniscule, according to Fire Chief Larry Nisbet.
If the numbers hold in the final report to be issued July 1, the increase in revenue, at the current tax rate, would be about $36,000.
The district says it needs $483,000 more to keep the existing number of firefighters on the force.
“If I can’t put four people on the scene, our ISO rating will go up a 9.0.” Nisbet said. “We need to have this assessment pass, which will bring our ISO rating down to a 3.0 on July 1.”
Insurance rates are based, in part, on ISO ratings.
Projected valuations in Matlacha/Pine Island ticked up 2.02 percent. Boca Grande saw one of the biggest projected increases, at 5.84 percent.
“The taxing authorities like it, that’s for sure. It’s also good for the local economy,” Wilkinson said. “Other counties in the state are seeing similar increases, so the economy is on an upward trend.”
The news of higher valuations makes North Fort Myers a more attractive place to live and work, say those who are in the know.
“We see a consistent growth here in North Fort Myers and we see this as a trend of the future as we will continue to build a solid foundation on real estate and tourism,” North Fort Myers Chamber of Commerce Executive Director Chris Jackson.
Al Giacalone, a Realtor with Rock Star Realty, said the recent numbers speak for North Fort Myers’ attractiveness.
“Our median sales price in North Fort Myers in 2013 was $115,000 and it held the same for the year-to-date, but for the last 30 days it jumped to $122,000,” Giacalone said. “We are seeing an increase here with inventory down, thus causing the price to go up.”
Cape Coral can once again claim one of the highest projected increases as its values went up 7.09 percent and an estimated total value of more than $10.19 billion. Only Fort Myers can boast a higher increase at 7.29 percent.
It’s the third straight year of increased values, and this news makes those in the real estate business very happy, as it means homes are selling again.
“It’s great for the industry that’s been working hard to clean up our foreclosure crisis. These people who came in and revitalized the community are in part what we’re seeing,” said Gloria Tate of Raso Realty. “We need to let people know that Cape Coral is still a great value, especially on the waterfront. Hopefully, we’ll have a productive summer.”
If government entities don’t choose to set the tax rate at the “rollback” level – the rate at which the same amount of revenue will come in – increased valuations mean more tax dollars for cities and districts.
In Cape Coral, that means possibly another $2.5 million to work with to possibly further repair its infrastructure after years of little to no funding for such, according to city Councilmember Jim Burch.
“We were using 3.5 percent in the Burton model, and we got 7,” Burch said of the projected percentage increase. “Because we haven’t replaced our computer and handed out raises, that helps a little. It seems like a lot of money, but we have a lot of things we need to put the money toward.”
Of all municipalities, Sanibel had the lowest projected percentage boost at 3.33 percent, with the fire district up 3.18 percent. Fort Myers Beach was 5.54 percent, 4.93 percent in its fire district.
Wilkinson said he sees the upward trend continuing, but hopefully not like it was from 2002-07.
“So much of that market wasn’t real. Those sales were based on false equity, for lack of a better word,” Wilkinson said. “This is a cash-driven market, so I feel better about it.”
The official numbers will be released on July 1, then the state will verify the numbers. In August, after public hearing during which cities and districts set their millage rates, notices will be sent to property owners.