New London - Housing sales are on the decline nationally, but housing prices in the city have gone up over the past five years.

The assessor's office is proposing an average increase of 18 percent in residential values and a 30-percent increase in commercial and industrial properties.

Assessor Barbara Perry outlined for the City Council Monday night the work her office has been doing on the state-mandated revaluation. An assessment is 70 percent of the fair market value of a property.

Although the cost of buying a house in the city declined in 2008, residential properties are still worth thousands of dollars more than they were in 2003, the time of the last revalution.

”We saw a huge increase over the past five-year period,'' said Stephen Ferreira, district manager for Vision Appraisal, which is working with the city on the revaluation. “Now we are in a one-year decline.''

In 2003, the median price of a single-family home was $156,750. In 2008, the median price was $190,000. Housing prices peaked in 2007 with a median price of $221,000.

Perry emphasized during her presentation that an 18 percent increase in value does not translate into an 18 percent increase in taxes. Typically during revaluations, values go up and the tax rate goes down. If a municipality does not increase spending, taxes remain the same, she said. The city's mill rate is currently 30.89.

”All of this is preliminary,'' Perry said. “We have to go through the hearing process and then changes will be made.''

More than 7,300 notices will be sent out Dec. 1 to property owners. Meetings will be scheduled starting Dec. 8 at the assessor's office for disputed assessments. Further appeals can be made to the Board of Tax Review.

The council discussed phasing in increases and also talked about helping senior citizens who may have trouble paying their taxes.

The city has in place programs to help older residents with their taxes, Perry said. She recommended against phasing property increases.

”It's just delaying the inevitable,'' she said.

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