Analysis: Waco home prices up 42 percent over past decade; Property tax rates fell to 3.11 percent

Medium realestate4

Home prices took a rose throughout Waco between 2010 and 2013, a BlockShopper analysis showed.

The median sale price in the area was $20,720 in 2010, but climbed to $36,032 in 2013 -- a difference of 42 percent. At the same time, the median Effective Tax Rate (ETR) fell from 5.90 percent in 2010 to 3.11 percent in 2013.

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 Waco, a $200,000 home would have a bill of $6,220 based on the area's median ETR. Parts of Waco have an ETR between 3.11 and 3.11 percent.

The area's projected median sale price for 2016 is $20,898, at which time a homeowner will have paid an estimated $6,364 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 Waco. To analyze the data more precisely, BlockShopper broke up suburbs into neighborhoods.

Neighborhood
2010 Sales
2010 Median Price
2010 Median Property Tax
2013 Sales
2013 Median Price
2013 Median Property Tax
013-02-00-01
1
$20,720
$1,223 (5.90% ETR)
3
$36,032, up 42%
$1,119 (3.11% ETR)

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