Analysis: Preston Heights home prices down 9 percent over past decade; Property tax rates fell to 5.17 percent

Medium realestate2

Home prices took a dive throughout Preston Heights between 2010 and 2015, a BlockShopper analysis showed.

The median sale price in the area was $46,732 in 2010, but fell to $42,585 in 2015 -- a difference of 9 percent. At the same time, the median Effective Tax Rate (ETR) fell from 5.93 percent in 2010 to 5.17 percent in 2015.

A home's ETR is its property tax bill divided by its marked value. A $200,000 home with a $3,000 property tax bill would have an ETR of 1.5 percent.

The median ETR in Illinois is 2.3 percent, according to a 2007 WalletHub analysis of U.S. Census data. In Indiana, it's 0.87 percent.

The average $200,000 home in Illinois has a property tax bill of $4,600, versus $1,740 in Indiana.

In Preston Heights, a $200,000 home would have a bill of $10,340 based on the area's median ETR. Parts of Preston Heights have an ETR between 5.17 and 5.17 percent.

The area's projected median sale price for 2020 is $38,752, at which time a homeowner will have paid an estimated $30,016 in property taxes on the home since 2010.

The Blockshopper analysis uses real home values, adjusting historical sales prices for inflation. The U.S. inflation rate from 2007 to 2015 was 14.3 percent, meaning a home had to appreciate by more than that to actually increase in value.

The table below compares sale prices and property taxes within Preston Heights. To analyze the data more precisely, BlockShopper broke up suburbs into neighborhoods.

2010 Sales
2010 Median Price
2010 Median Property Tax
2015 Sales
2015 Median Price
2015 Median Property Tax
East Joliet
$2,769 (6.13% ETR)
$42,585, down 6%
$2,202 (5.17% ETR)

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