Community Government

Gig Harbor, Key Peninsula property values take 6% jump

Posted on June 26th, 2024 By:

Home values across the Gig Harbor and Key Peninsulas increased in value by more than 6% this year. That matches the average residential rise across Pierce County after a 3% drop last year, Pierce County Assessor-Treasurer Mike Lonergan said in a press release Wednesday.

Average Gig Harbor Peninsula home worth $937,000

The average home within the Gig Harbor city limits rose 6.6%, from $723,897 to $771,310, the second-highest value in the county. It lags only the Gig Harbor Peninsula, encompassing both the city and unincorporated areas, which jumped 6.4%, from $880,236 to $936,637. Key Peninsula home values rose 6.3%, from $342,244 to $363,698.

Countywide, the average residential property increased in value by 6.2% this year, going up from $521,300 to $553,500.

The latest assessed property values for residential and commercial properties throughout Pierce County are in the mail to taxpayers and posted on the Assessor-Treasurer’s website.

Property values based on similar sales

The change in home value varies in different communities, based on actual sales of similar properties. This year, county appraisers visited nearly every house in Lakewood, University Place, Steilacoom and DuPont, while values in other areas were based on trending market sales of similar homes.

Now, during the summer months, appraisers are inspecting all new construction in Pierce County and adding its value to the tax rolls.

Doesn’t mean taxes go up 6%

Lonergan cautioned homeowners not to conclude that an increased value will automatically result in a property tax increase next year. Instead, the county uses the 2024 values to determine each property owner’s share of taxes  collected in 2025. That’s because state law limits each taxing district to a 1% annual increase in their property tax revenue, unless it is further increased by a majority vote of the people.

“Your property tax in 2025 will be the new 2024 value multiplied by the combined tax rates of your school district, city, fire district and other local districts, plus the statewide school levy that everyone pays,” Lonergan explained. “So, a lot depends on public votes such as levy lid lifts and bond issues.”

Property tax bills will be mailed in February.

Commercial property values show slower gain

Commercial properties showed a moderate combined value increase of 3% over last year. Retail was fairly flat and office space generally lost value, while warehouses stayed strong and mobile home parks increased substantially, Lonergan said.

The combined value of all properties in Pierce County continued to grow at a rate of nearly 6% in the past year. The price tag for all taxable properties (about 330,000 of them) jumped from $185 billion to over $196 billion.

Any property owner who believes the Assessor-Treasurer has overvalued their property can appeal to the Pierce County Board of Equalization at no cost. Land owners must file the appeal by Aug. 26, providing evidence that comparable properties have sold recently at a lower amount. More information is available here.

Homeowners over age 61 or fully disabled at any age can qualify for reduced property taxes if their gross household income is below $64,000 per year. A fillable application form and instructions are on the Pierce County Assessor-Treasurer’s website.