County Assessor Larry Stone announced that in the Santa Clara County residential real estate market demonstrates marks of bottoming out. However, as for commercial real estate prices, they are still falling.
Actually, the assessor’s annual report claimed that at the beginning of the 2010 year the assessed value of all real estate and business property in the Santa Clara County in was about $296 billion, and at the end of 2010 year this number fell 2.4 percent ($7.4 billion). Specialists say that such kind of situation has taken place the first time from the time of the Great Depression.
To demonstrate the sudden drop, the specialists point out that just in 2008, the assessment roll raised by almost $20 billion.
Actually, approximately 1,400 commercial constructions became in $5 billion cheaper. The typical decrease of every property was $3.6 million, at the same time as every home in the Santa Clara County became in $175,000 cheaper. So, county Assessor Larry Stone considers the price of industrial and commercial property will go on falling, at least, for the duration of 2 -3 years. He, as well, claimed in his yearly report on August, 26 that all commercial property that was constructed and obtained for the last 10 years is probable to be over-assessed. He added that the word “bleak” best of all illustrates nowadays situation.
As a matter of fact, the Santa Clara County lose about 4,000 businesses (from 46,000 to 42,000) and this, in fact, a historic record, dropping to less than $1 billion — 25 percent of the sum that was recorded in 2001.
Across the Santa Clara County, value dropped in all cities not including Palo Alto, where assessed worth raised by one third of a percent to $22 billion. Most of all, the worth fell in Gilroy and Morgan Hill (6 percent), to $5.8 billion and $6 billion correspondingly. As for San Jose, prices dropped by 3 percent to $118.7 billion. In Santa Clara the value was lessened by almost 4 percent in to $23.7 billion and in Mountain View the value fell approximately 3 percent to $15.7 billion.
Specialists say that it is a quite straightforward procedure to lessen property tax assessments on housing, and, frankly speaking, it’s always been rather difficult for commercial property, because, in fact, every building is exclusive, that’s why the assessment is very difficult.