15 Jan Report: San Diego property tax values increase $23 billion

San Diego real estate values continue to rise. Property values rose 5.6 percent last year –rising by $23 billion during the last fiscal year, according to a report of assessed property values by the state Board of Actualization released in late December.

The figures cover the period ending June 30, 2015. Compared to statewide averages, San Diego’s numbers were 0.3 percent lower, but come as the state still recovers economically. For the last 5 years, the assessed value of all California properties, including non-housing property, has increased. Local real estate officials are optimistic about real estate values and point to the figures as a sign economic recovery will continue.

Will San Diego real estate taxes rise?

The higher assessed  property values won’t mean automatically higher taxes, though; tax hikes are capped at 2 percent, according to a 1978 law that limits tax increases and bases values on the most recent sales prices. The higher property values come as good news to local housing officials as more luxury developments spring up, demand increases and the prices of homes for sale in San Diego continue to rise. San Diego home prices beat national averages, increasing 6.2 percent over the last 12 months, according to S&P/Case-Shiller Home Price Index released in December.

2016 is projected to be a year of relatively flat growth, but growing demand for San Diego real estate might ease some market pains, analysts predict. In November, home values rose 8.9 percent in the last 12 months to $468,100 amid sluggish sales, according to CoreLogic data. Month-to-month, sales increased 2.5 percent.

That month 2,740 homes and condos sold, up 3.6 percent from the previous year, but sales dropped 18.4 percent from October. Sales in November ranked the ninth-lowest November in 28 years.