How is the Change Property Ratio (CPR) calculated?

The Change Property Ratio (CPR) is calculated by taking the average Market Adjustment Value (MAV) of all unchanged properties and dividing it by the average Real Market Value (RMV) of those same properties. This calculation helps determine how much adjustment should be made to property values, reflecting changes in the market or property assessments. By using the values of properties that remain unchanged, the CPR aims to provide a stable basis for valuation adjustments without the volatility that may be present in properties that have recently changed hands or undergone significant improvements.

The average MAV represents the assessed value of properties which have not experienced any changes, making it a reliable figure to base comparisons on, while the average RMV reflects the current market conditions. This ratio ultimately provides insight into the relationship between the assessed values and the market values, which is essential for accurate property appraisal in Oregon.