Values Compared to Last Year
Did Values Change?
The Needham Assessors conducted a DOR mandated sales review in preparation for Fiscal Year (FY) 2023. With strict oversight from the Massachusetts Department of Revenue, a comprehensive review and statistical analysis of all sales from calendar year 2021 was conducted to ensure that the values of all properties in Needham reflect what was taking place in the Needham real estate market during calendar year 2021. This analysis was thoroughly reviewed and officially certified by the Department of Revenue prior to the approval of the FY23 tax rates and the issuance of the third quarter (December 2022) tax bill. Adjustments for the FY 23 values were based on a comprehensive review and statistical analysis to reflect market activity from the calendar year 2021 sales. The analysis of calendar 2021 sales showed that upward adjustments in values were necessary for FY 23.
Effects on Residential Property Values
The average residential single family property value increased by 9.63% to $1,114,084. This year's assessments represent the market value of properties as of January 1, 2022 and reflect the continuation of a very strong residential market in Needham. It is important to note that while the average single-family home value increased by 9.63%, there are individual differences in valuation changes among neighborhoods and different types of property. In some neighborhoods, recent sales, changes to the cost tables used to determine building values, and property inspections after a sale or recent permitted upgrades, have resulted in value increases of greater or lesser than 9.63%.
Older properties with limited maintenance and/or improvements had been adjusted in value in some areas to reflect a possible reluctance of developers to invest as they once did in properties to be demolished for new construction. On the other hand, new high-end properties, while taking longer to sell in some cases, are still rising in their market value. Downward adjustments were made to some of Needham's older, larger condominium complexes.
Sales data from January to October of 2022 reflects a continued increase in the median sale price of single-family homes in Needham. Early analysis of calendar 2022 residential sales indicates an overall stable "seller's" market is continuing, as is evidenced by these median price increases.