By THOMAS GRILLO
LYNN — It will cost more to live in the city next year.
While Lynn’s residential property tax rate is expected to fall by 58 cents, the median tax bill for a single-family home will rise by $163, a 4 percent increase. Condominium owners will see a $107 hike in taxes.
But multi-family owners will take the biggest hit with a nearly 9 percent increase, adding $452 to their bill.
“Sales of multi-families are being driven by buyers who are priced out of Malden, Medford, Somerville, Chelsea and Revere,” said Meaghan Kramer, an agent at Toner Real Estate in Lynn. “They’re coming to Lynn where they’re finding it a little more affordable.”
From January through November, 205 multi-family homes have sold in Lynn, up from 179 for the same period last year, according to the MLS Property Information Network. Median prices have jumped by 8 percent to $400,000, up from $370,000 a year ago.
Multi-families are not the only properties seeing an increase in sales and prices. Single-family home sales are up 7 percent since the first of the year while median prices have swelled by 12 percent.
“Property values are being driven by high demand,” said Peter Caron, Lynn’s chief financial officer. “There’s lots of pent-up demand and lots of people looking at a limited number of properties on the market. It’s rare to see homes selling for much under asking price.”
The commercial real estate tax rate fell by $1.39 to $30.67 from $32.06 in 2015.
The median increase for a commercial property owner will rise by $118 while the industrial user will see a $73 increase.
Caron said this is the first time in three years that commercial values have risen, up 4 percent. The city is seeing a reversal of the trend from 2008 through 2014 when the tax base shifted from residential properties to commercial due to a nearly 30 percent loss in home values.
The result, during that period, was a higher tax burden for the commercial and industrial sector.
While rising values are good news for sellers, Caron said he sees some of the same dynamics at play in the market reminiscent of the real estate meltdown from 2004-2006.
“We are starting to see the same type of market some years ago when prices rose substantially and quickly, and that led to the real estate bust,” he said.
Thomas Grillo can be reached at tgrillo@itemlive.com.