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Santa Clara County property values jump at fastest post-COVID pace

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The Steve Jobs Theater, foreground, in the Apple Park campus in Cupertino, California, on Thursday, September 7, 2017. (LiPo Ching/Staff Archives)




SAN JOSE — Property values in Santa Clara County soared at their fastest pace in six years during 2022, a hint that the area’s remarkable real estate market has yet to suffer long-term economic maladies from the coronavirus.

Santa Clara County’s property tax roll jumped to an all-time record high of $619.95 billion in 2022, the Assessor’s Office reported.

The value of the county’s property tax roll increased by 7.5% in 2022 compared with 2021, according to the county agency. In 2021, Santa Clara County properties boasted a combined assessed value of $576.9 billion.

The gain in 2022 represents the fastest increase since 2016, when property values rose 8%, according to archived information that the Assessor’s Office provided to this news organization.

An airliner comes in for a landing at Norman Y. Mineta San Jose International Airport over downtown San Jose, Calif., on Sunday, Dec. 8, 2019. (Randy Vazquez/Staff Archives)
A jetliner flies past downtown San Jose, 2019. (Randy Vazquez/Staff Archives)

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.

The exterior of the new Google Bay View campus is photographed on Monday, May 16, 2022, in Mountain View, Calif. The 42 acres campus totals 1.1 million square feet, with two office buildings, an event center, and 20 acres of open space. (Aric Crabb/Bay Area News Group)
Google Bay View campus in Mountain View, May 2022. (Aric Crabb/Bay Area News Group)

“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.

 


Originally published at George Avalos
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