The formula is actually very simple: take the $ amount of the previous year’s tax levy, add 2.5% for Proposition 2 1/2, and also add any new growth (such as new construction or a condo conversion). This figure is the new tax levy. To this figure is added debt service – the Principal and Interest payable on the town’s debt.
Here are the numbers for FY 2017 and 2018, remembering that the FY runs from July to June.
The Tax Levy calculation
The $ amount raised by the property tax will increase year by year. That is because of the formula: last year’s number plus 2.5% plus new growth. In the table above you can see how the FY 2017 tax levy of $57,779,806 becomes the base for FY 2018. Add 2.5% and new growth and the new figure is $59,592,925. To both these numbers is added the debt service – Principal and Interest on the town’s debt, much as homeowners pay P&I on their mortgage.
The Tax Rate
The actual tax rate depends upon the total Assessed Value of all property: residential, commercial and personal. The tax rate is calculated by dividing the total dollar amount to be raised by the total Assessed value of all property. Thus, while the $ amount raised by the tax (and therefore the average tax bill) will increase each year, the headline tax rate will fluctuate depending upon the direction of Assessed Values.
In simplistic terms, the $ amount raised before debt service will increase by a little more than 2 1/2% each year, so if the median Assessed Value also increases by a little more than 2 1/2% the tax rate will be unchanged. If the increase in Assessed Values is less than 2 1/2%, then the tax rate will rise. And if the increase in Assessed Values is more than 2 1/2% then the tax rate will rise.
In FY 2017 the tax rate was $11.02, achieved by dividing the almost $64 million to be raised by the $5.8 billion of Assessed value. And in FY 2018 the calcualtion is $66.3 million divided by $6 billion.
How does debt service affect the tax rate?
The announced property tax rate announced each year includes the cost of debt service. As can be seen in the table below, while the tax rate from the levy to pay for town services has declined in recent years as property prices have increased, the cost of debt service has increased steadily, as we are paying for large ticket items such as the Glover School and Transfer Station.
What is the outlook for FY 2019?
The residential real estate market in Marblehead has been very strong in 2017 (and the 2017 median price will be the basis for the FY 2019 tax rate). At this stage it looks as though the median price will be around $660,000, an increase of over 6% from 2016’s $620,000. But bear in mind this is the median price of the roughly 230 SFHs that will sell this year out of the more than 6,200 SFHs in Marblehead, so does not imply that the Town’s Assessed Value will increase by 6%.
Nevertheless, with debt service at this time forecast to be similar to the FY 2018 level, it seems reasonable to expect a modest decline in the tax rate for FY 2019. But tax bills will continue to go up!
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
The Sunday after Thanksgiving is generally regarded as the busiest travel day of the year and consequently there are normally only a few Open Houses. And then it is December.
So today is the last major day for Open Houses. And here is a link to the ones in Marblehead, Swampscott, Salem, Beverly and Lynn: Open Houses.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
It’s that time of the year when many New Englanders start thinking about skiing. For many the winter routine is well-established, but the more adventurous may care to read The perfect ski home from Mansion Global and consider some other options.
And don’t forget: we are part of the worldwide Sotheby’s International Realty group and can introduce you to an agent almost anywhere in the world.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Many of the headlines about real estate over the last year or so have referred to the decline in inventory. One result of the decline has been bidding wars. Another consequence is that some prospective buyers have become discouraged and stopped looking actively, while some sellers have not listed their house because they fear they will not be able to buy another house.
The chart below shows the month-by-month inventory of SFHs for sale in Swampscott over the last 4 years. Inventory in early 2015 was impacted by the brutal winter (remember the polar vortex?), but it picked up only slightly thereafter. And as we saw in my post Marblehead’s Collapsing Inventory published earlier in the week, there has been no significant pick up in inventory in either of the traditional selling seasons: spring and fall.
Source: MLS, Oliver Reports
Here’s another way to look at the inventory: this chart shows the monthly average number of SFHs for sale each year:
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house. The carriage house is free.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Bring Me An Offer.”
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Many of the headlines about real estate over the last year or so have referred to the decline in inventory. One result of the decline has been bidding wars. Another consequence is that some prospective buyers have become discouraged and stopped looking actively, while some sellers have not listed their house because they fear they will not be able to buy another house.
The chart below shows the month-by-month inventory over the last 4 years. The number of homes for sale in 2016 was quite consistent with 2015, but 2017 has seen a major drop. Most notably, there was no real pick up in inventory in either of the traditional selling seasons: spring and fall.
Source: MLS, Oliver Reports
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
This property offers not just one, but two houses on what is currently one lot. Oceanfront properties on the North Shore in general sell for $500-1,000 plus per sq.ft. 11 Crown Way is offered at just $440 per sq.ft. – and that counts just the main house.
Breathtaking views all the way down to the South Shore from this gracious, restored (1998-2006), 1870s oceanfront home. The open floor plan offers an easy flow for entertaining. The house sits on a private beach, high above the Atlantic, in a wonderfully protected location (no flood insurance required.) VIEWS and VIEWS and VIEWS.
Carriage house believed to be a stop on the Underground RaiIroad. Property featured by Massachusetts Historical Commission.
Listen to the sound of the ocean, while looking out over the rocks which provide a sanctuary for wildlife.
Just 13 miles north of Boston’s Logan Airport, while enjoying all the charms and delights of the “Yachting Capital of America”, and “New England’s Best-Kept Seaside Secret.” Huge price reduction allows for any further updating required.
Owner says “Bring Me An Offer.”
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
There are many benefits to a large kitchen island. But it’s not your only option. The following kitchens, in this article
on Houzz.com, show a variety of alternatives that might offer a better solution for your space.
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, please contact Andrew Oliveron 617.834.8205 or Kathleen Murphy on 603.498.6817.
If you are looking to buy, we will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Record high last Friday, record low this weekend – don’t you love New England? The message is loud and clear: it is time to get your house – and yourself – ready for winter’s onset. Here is an excellent guide originally published in Boston Patch.
Protect Your Pipes
Make sure your plumbing pipes are protected. Pipes freeze under three common scenarios: quick temperature drops, poor insulation and thermostats that are set too low.
Check the insulation of pipes in your home’s crawl spaces and the attic, because they’re the most susceptible when temperatures plummet.
Wrap pipes in heat tape or thermostatically controlled heat cables, but be sure they’re approved by an independent testing organization, such as Underwriters Laboratories Inc.
Use caulk or insulation to seal leaks that allow cold air to flow inside near plumbing pipes. Pay particular attention to leaks around electrical wiring, dryer vents and the pipes themselves.
Disconnect hoses from each spigot on the outside of your house. Drain and store them.
Use an indoor valve to shut off and drain water from pipes leading to outside faucets. This will reduce the chance the short span of pipe just inside the house will freeze.
In extreme cold, you may be able prevent your pipes from freezing by allowing a trickle of warm water to drip overnight, preferably from a faucet on an outside wall.
Leave your thermostat at the same temperature, day and night. Your routine may be to turn the heat down when you go to bed, but when the temperature plummets, which often occurs overnight, your pipes could freeze. Better to have a higher heating bill than costly repairs necessary when pipes freeze and burst.
Keep garage doors closed if there are water supply lines in the garage.
Open kitchen and bathroom cabinet doors to allow warmer air to circulate around the plumbing. Be sure to move any harmful cleaners and household chemicals up out of the reach of children.
If you will be going away during cold weather, leave the heat on in your home, set to a temperature no lower than 55 degrees Fahrenheit. Another idea is to turn off the main water valve before you leave home, even if you’re going to be gone only for a weekend.
Furnace Been Checked Lately?
With the house sealed up, you’ll also want to check these items off your list:
Make sure your furnace has been serviced to ensure it is running efficiently and safely.
Install a carbon monoxide detector and water heater, especially since they could be running on overdrive in freezing temperatures.
If you have a wood-burning fireplace, make sure the chimney is cleaned and the chimney cap is in place.
What to Do During Power Outage
You should also gather some other items you may need in the case of a power outage — and don’t forget to talk through the emergency plan with your family:
Have plenty of matches, candles and flashlights on hand in case the power goes out.
If you have a wood-burning fireplace or stove, make sure you have some cut firewood ready in case of an emergency.
A few extra gallons of water.
Non-perishable food items for you and your pets.
Lots of blankets, sleeping bags and comforters.
A battery-powered radio.
Backup battery for your cell phone and computer
A first-aid kit.
Dress for the Cold Regardless
Now, make sure your vehicle is ready to go for the cold months ahead. Here are some tips from the National Oceanic and Atmospheric Administration:
Have you located the windshield scraper and brush? Find them before you need them.
Keep your gas tank at least half full during extreme cold situation, so you can stay warm if you become stranded.
Dress for the extreme cold, even if you don’t think you’ll be out much.
Graphic courtesy of NOAA Car Emergency Survival Kit Must-Haves
Put together a winter car survival kit for your vehicle. Be sure to include:
Definitely include jumper cables, but you may want to include flares or reflective triangle as well.
Flashlights and extra batteries.
First-aid kit, including necessary medications, baby formula and diapers if you have a small child.
Non-perishable food items such as canned food (don’t forget a can opener) and protein-rich foods like nuts and energy bars. If you travel with pets, make sure to include food for them, too.
Water — at least a gallon of water per person a day for at least three days.
Basic toolkit with pliers, wrench and screwdriver.
Cat litter or sand for better tire traction.
Extra gloves, hats, sturdy boots, jacket and extra change of clothes for the cold.
Blankets or sleeping bags.
A car charger for your cellphone
Are you considering selling your home? If so please contact me on 617.834.8205 orAndrew.Oliver@SothebysRealty.comfor a free market analysis and explanation of the outstanding marketing program I offer.
If you are looking to buy, I will contact you immediately when a house that meets your needs is available. In this market you need to have somebody looking after your interests.
Andrew Oliver is a Realtor withHarborside Sotheby’s International Realty. Each Office Is Independently Owned and Operated
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