We’re all looking for silver linings, so here’s one you probably haven’t thought of.
In Colorado, property taxes are based on what your home might have sold for on June 30th of every even numbered year. County assessors are required by the state constitution to estimate what your home could have sold for on that date based on what comparable homes sold for during the 24 months leading up to that date. Using computer programs, their software “ages” each sale to come up with a value as of June 30, 2020.
Thus, if a home comparable to yours sold for, say, $500,000 on December 31, 2019, the computer figures out how home prices in your area, on average, changed from Dec. 31st to June 30th in order to come up with an “aged” value to use in valuing your home on that date.
Therefore, if, as some experts suggest, home prices drop in May and June of this year, that $500,000 comp may have a valuation for assessment purposes of less than that on June 30, 2020.
In conclusion, if we have a dip in home values by the end of June, but the values recover in 2021 and 2022, as the same experts suggest, your property tax bill may be lower for the next two years as the result of that temporary dip.