SAN JOSE — Property values in Santa Clara County soared to a record level in their most recently reported year, although economic headwinds have begun to emerge that could undermine the area’s resilient real estate market.
Santa Clara County’s property tax roll jumped to an all-time record high of $661.2 billion for 2023, the Assessor’s Office reported.
The value of the county’s property tax roll increased by 6.7% in 2023 compared with the 2022 reporting year, according to the county agency. Santa Clara County properties boasted a combined assessed value of $619.95 billion for 2022.
The gain for 2023 represents a robust rate of increase in line with recent years, according to archived information that the Assessor’s Office provided to this news organization.
Values rose 7.4% in 2017, 7.3% in 2018, 6.8% in 2019, 6.9% in 2020 and 4.6% in 2021.
Despite the sturdy increase to a record-setting pace, headwinds have emerged that are likely to hobble the South Bay’s property markets, Santa Clara County Assessor Larry Stone warned.
“While residential property values have stabilized recently, high mortgage interest rates and inflation have reduced consumer buying power,” Stone said in a prepared release.
It’s entirely possible that the increase could be somewhat fleeting. Problems have emerged for commercial properties and residential properties.
“With residential sales volume down 20% and office vacancy increasing due in part to remote work, the volatile and unpredictable nature of Santa Clara County real estate causes us to question the future of property values,” Stone said.
Source: www.mercurynews.com