While homeowners in the San Francisco Bay Area are enjoying an unsolicited property tax cut due to falling home prices, Santa Clara County is singing a different tune as its real estate reaches new heights with a record $661.2 billion assessment roll for 2023-23, according to the Silicon Valley Business Journal.
This impressive 6.65% increase from the previous year is attributed to changes in property ownership adding a staggering $21.5 billion in assessment value, and new construction adding another $6.8 billion, as reported by County Assessor Larry Stone's office. Meanwhile, the rest of the San Francisco Bay Area has experienced a decline, prompting automatic property tax cuts for homeowners in Alameda, Contra Costa, and San Mateo.
Among Santa Clara County's cities, Sunnyvale had the largest increase to its assessment roll with an 8.6% jump to $67.6 billion. Other standout cities include Monte Sereno, Mountain View, Los Gatos, and Santa Clara itself, with assessment roll increases ranging from 8.25% to 7.28%. Even San Jose, the county's largest city, fared well with a 6.52% increase, bringing the total assessed value to a staggering $246.18 billion.
While Santa Clara County flourishes, its neighbors are grappling with reduced home prices thanks to higher interest rates and other market factors. According to the San Francisco Chronicle, assessors in Alameda, Contra Costa, San Mateo automatically cut the assessed values on homes and condos that sold near the peak of the market, which was around the middle of last year. This proactive process resulted in thousands of homeowners receiving substantial reductions in property taxes.
Bay Area assessors haven't applied large-scale reductions to property assessments this widely since the previous housing downturn when approximately 657,000 properties across the nine-county region received temporary price reductions. However, it's important to note that even with the current circumstances for homeowners in areas adjacent to Santa Clara County, the majority of homes throughout the entire region still retain assessed values below their current market values.
Homeowners in affected cities must brace themselves for the roller coaster of property values. While these automatic reductions can offer temporary financial relief, they could be reversed or adjusted as housing prices fluctuate. Meanwhile, those residing within the booming areas of Santa Clara County may consider themselves fortunate to witness their properties' values skyrocket this fiscal year.
As Santa Clara County's real estate market outshines its neighbors, the question remains: how long will this real estate boom last?
