The real estate market is local and I'm not going to speculate on what is happening in your market. What I can tell by the information you have provided here is your home was purchased at the height of the market. Prices in almost every market were at all time highs and likely over inflated because of the boom we were experiencing at the time. As I stated above real estate is local and each market is different but there were very few, if any, that escaped without declines.
Not knowing whether you are talking about tax assessed values or actual appraisals, there is a difference Iâ€™d like to explain. The tax assessor may not be aware of the improvements you have made and those would not be reflected in the assessed value. Tax assessed values are not always a good indicator of market values. If you've had actual appraisals done, they will more closely reflect the market value of the home.