While other regions across the state continue to wrestle with their uncertain housing markets, Silicon Valley's housing market continues to show its resilience. In fact, the 2011-2012 Santa Clara County assessor's annual report suggests "the worst may be over" for the region.
The recently released county assessor's annual report indicates Santa Clara County's assessment roll increased slightly from $296 billion to $299 billion, a 0.88 percent increase. It's a small increase, but encouraging news which signifies a positive trend, county assessor Larry Stone indicates in his report.
Data from MLSListings Inc., the Multiple Listing Service for the Silicon Valley Association of REALTORS®, confirms a positive trend in a number of cities. In Los Gatos, closed sales of single-family homes in the second quarter of this year picked up in comparison to the first three months of 2011. There were 98 closed sales in 2011 Q2, up from 83 in 2011Q1, though below 102 last year. The median price of a single-family home, pegged at $1,297,500 in 2011 Q2, is up from $1,100,000 in the previous quarter and $1,265,000 in the second quarter of 2010. The July 2011 median of $1,300,000 showed a year-over-year increase from $1,230,000, but was below the June 2011 median of $1,377,500.
Saratoga's closed sales of single-family homes more than doubled to 97 in the second quarter of 2011 from 43 in the first quarter, though there were 110 closed sales in 2010 Q2. The median sales price of $1,475,000 in 2011 Q2 was up from the median of $1,410,000 in the first quarter, and slightly below the median of $1,499,000 in 2010 Q2.
The assessor's report identifies changes in ownership and new construction, and the increase in assessed value of business personal property as major contributors of growth and indicators that the worst may be over. While the number of newly constructed properties declined 14 percent, the assessed value per building permit soared 50 percent. The assessed value of business personal property, including machinery, equipment, computers and fixtures owned by county businesses, increased by 2.54 percent, after experiencing an 8 percent decline last year.
"Both of these factors confirm that local companies are investing and expanding, indicating increased confidence in Silicon Valley's future," Stone states in the report.
In addition, as a result of an increase in market based transactions and instances of multiple offers and sales above the asking price, the report notes the assessed values of 45,773 properties in certain residential markets were partially restored.
There were major differences in assessment roll growth in different geographical areas. Cities like Los Altos Hills and Los Altos experienced solid growth at 3.81 percent and 3.59 percent, respectively. Los Gatos experienced a 1.30 percent growth and Saratoga, 1.96 percent. In contrast, Milpitas was negative at – 3.48 percent.
The Assessor's office identified 124,148 properties, primarily homes and condominiums, that were valued less than their purchase price to reflect changes in market conditions, therefore qualifying for a reduction in the property's assessment. In Los Gatos, a total of 2,241 properties were valued less than their purchase price; in Saratoga, 2, 274.
Santa Clara County residents received a notification of the assessed value of their property in June. Once homeowners received their assessment notification cards, they could seek an informal review before August 1. They have between July 2 and September 15 to file a formal appeal. Requests for appeals cannot be considered past the deadline.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.