What is one factor that can necessitate a change in property assessment?

Changes in market conditions are a primary factor that can necessitate a change in property assessment. When the real estate market experiences fluctuations—such as an increase or decrease in property values due to economic conditions, demand shifts, or changes in the local economy—assessors may need to adjust property valuations to reflect the current market value accurately.

Assessment practices are designed to ensure that properties are valued consistently within the market context. For instance, if a neighborhood experiences a surge in demand due to new developments or an influx of residents, property values typically increase, prompting reassessments to ensure that property taxes reflect these current values. Similarly, if there is a downturn in the market, reassessments are also necessary to adjust values downward.

In contrast, factors such as an increase in mortgage rates or changes in ownership do not inherently change the actual market value of a property, and myths about property values often stem from misinformation rather than factual market data. Therefore, understanding the influence of market conditions is crucial for assessors in maintaining fair and accurate property assessments.