By Khalida Sarwari
Property owners in Los Gatos and Saratoga can rejoice in the news of a resurgent residential market, according to the Santa Clara County Assessor’s Office.
Assessor Larry Stone’s office released a market data report on May 20 with an early analysis of single family homes and condominiums over the past two years. Using data from November 2012 through January 2013 and comparing it to the same time period last year, in Los Gatos the market value for residential homes increased about 8 percent (from $579 to $625) and in Saratoga, it was an 8.4 percent increase (from $623 to $676), the assessor’s office said. For condos, it was a 13.3 percent increase for both communities (from $443 to $502 in Saratoga and $443 to $502 in Los Gatos). Countywide, it was a 13 percent increase for single-family homes and 24 percent for condos.
“The market has finally recovered,” said David Ginsborg, deputy to the assessor. “We’re not back to peak, but we’re doing better. Market value is coming back and that’s good news in terms of equity.”
Ginsborg noted that property owners who received temporary reductions in assessed values in past years due to declining market values will likely experience an increase in property taxes now that market values are improving. According to Ginsborg, up to 25 percent of homeowners in Los Gatos and 22 percent in Saratoga may see an increase beyond 2 percent.
In Los Gatos last year, 2,332 properties received a reduction, and in Saratoga it was 2,277. Both figures include commercial properties.
For most property owners, however, their assessed value will increase by no more than 2 percent, which is the same amount as in previous years, in accordance with the California Consumer Price Index limit prescribed by Proposition 13.
The data is an early indicator of the direction of the housing market and will be used by Stone’s office to assess residential property. The information is also intended to inform homeowners about changing market conditions in their neighborhood and to prepare them for potential increases in assessed values and property taxes, Stone said. Other factors, such as location, school district, quality, age and number of bedrooms, also affect property values.
The assessor’s office will mail assessment notices to all property owners at the end of June.
To view charts and graphs associated with the county assessor’s report, visit sccassessor.org.
