Assessed property values jumped more than 9 percent for some cities in the South Bay last year, driven by a strong housing market.
Overall, the assessed value of Santa Clara County real estate jumped a record $43 billion in 2021 to $620 billion, fueled by surging property sales, the Silicon Valley Business Journal reported.
That made for a 7.5 percent jump in assessed property value in the most populous county in the Bay Area and the sixth biggest in the state, according to a report by County Assessor Larry Stone.
Most of the increases for assessments stemmed from property sales, which allow the county to reset values to the market price. Some $24 billion of the increase in assessed values came from such transactions, the bulk of them involving residential sales, Stone said.
There were many home sales that closed not only well above the assessed value of the property but above the asking price, he added.
“The residential market in Santa Clara County has been on fire,” Stone said.
New construction added about $5.9 billion to the total assessed value of county property, according to the assessor’s office report. Much of the increase from construction came from new commercial buildings. Nvidia’s expansion of its headquarters in Santa Clara accounted for $310 million of the rise in property values.
Among cities across the county, the biggest percentage increase in assessed worth was in Monte Sereno, where the total value rose 9.6 percent year-over-year to $2.6 billion. Mountain View clocked in for a 9.2 percent increase to $41 billion.
San Jose, the region’s biggest city by far, posted the largest dollar increase, with assessments rising $15.2 billion, or 7.1 percent, to $231.1 billion.
Campbell saw the smallest percentage increase in total assessed worth, with values rising 6.3 percent to $13.1 billion.
Santa Clara County had a typical rent last month of $2,549, the fourth highest among U.S. counties, behind Manhattan (New York County) at $2,833, Orange County at $2,632 and Napa at $2,555, according to a ranking by ApartmentList.com. The San Jose metro market has seen the nation’s fastest rent growth over the past six months, with an overall increase of 11 percent.
[Silicon Valley Business Journal] – Dana Bartholomew
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