PORTSMOUTH
Property values are expected to drop slightly overall - one-third of a percent - for the 2015 fiscal year, while some neighboring cities are anticipating increases, according to the city's tax assessor.
The decrease in value - nearly $16 million - would reduce the city's tax revenue by about $200,000, according to City Assessor Janey Culpepper.
"We're really at where I thought we would be," Culpepper said. "We had anticipated that there would be, possibly, a slight decrease, primarily because of the values of the townhouses and condominiums."
In comparison, other cities in South Hampton Roads, including Chesapeake, Norfolk and Virginia Beach, are expecting their property assessments to rise.
Close to half of Portsmouth's residential neighborhoods in the city saw their home values reduced, while 9 percent had an increase. The rest went unchanged. Commercial properties had a slight overall decrease.
The budget unveiled earlier this month would not raise the real estate tax rate, currently set at $1.27 per $100 of assessed value.
Culpepper said that the city saw more real estate sales and fewer foreclosures in the 2013 fiscal year than the previous year. But she added that the real estate market is still suffering, saying one-third of the property sales in 2013 were "distressed," including foreclosures and short sales.
Those sales, which keep property values down, are particularly evident among Portsmouth's townhouse and condominium communities, Culpepper said.
Fewer people are buying townhouses and condos because the prices of detached houses are affordable. Rising condo fees are also keeping buyers out of the condo market, Culpepper said, citing one condo complex in Portsmouth that has a monthly condo fee greater than $500.
Culpepper also said the new tolls at the Downtown and Midtown tunnels could have a negative impact on property values.
Tim Eberly, 757-446-2794, tim.eberly@pilotonline.com