Property values across Riverside County will increase by 7.74 percent overall this year, the largest percentage increase since 2007 and the highest total assessment-roll value since 2008, Assessor Larry Ward said Monday. Even better for Riverside County residents, the average property owner will not see a comparable property tax increase.
The assessment roll is based upon assessed property values in Riverside County. This year, the driving factor in the roll’s increase is the year-over-year growth in the average sales price of single family homes in Riverside County.
Median home sales price increased 24 percent, from $210,000 to almost $260,000, between December 2012 and December 2013, according to statistics from Data Quick, a real estate information services firm that compiles monthly reports from public records. Values are established as of January 1 each year.
Though the median sale price has increased by 24 percent, most Riverside County homeowners will not see a comparable property-tax increase because much of the median increase is attributable to a broader mix of homes selling in the market. Other factors include price gains in multi-family apartments, large warehouse properties and vacant land.
Tract-map recordings and permits issuances also are rising, signs the housing market continues to improve. Although retail and general commercial property values continue to lag, future increases in these areas are likely as the economy in general continues to improve.
A substantial decline in foreclosure-related activity also has significantly affected Riverside County’s improved real estate market. Fewer foreclosures reduced the number of homes for sale and increased competition for available homes, pushing prices higher.
“After several years of economic difficulties, the Inland Empire and specifically Riverside County appear poised to once again be one of the fastest growing counties in the state,” Ward said.
Under the law, as economic recovery increases market value, valuations that were lowered during the recession must be increased to match the subsequent upswing.
In those cases, property tax-increases on the properties are allowed to exceed the standard 2 percent annual cap set by Prop. 13. This year’s Prop. 13 annual inflation cap, as determined by the California Consumer Price Index, is 0.454 percent.
Property owners whose assessments have not been reduced per Prop. 8 will notice their assessed values increased by this inflation factor. (A Prop 8 reduced assessment occurs when the current market value of a property is less than the assessed value as of January 1.)
Despite the overall increase in the assessment roll, many properties still remain well below peak values.
Under state law, assessed values can be lowered temporarily based on a property’s value on Jan. 1 of each year. Changes in the real-estate market can affect subsequent assessed values and Ward said his office continues to review individual properties for potential changes in value, which can affect property taxes. The review is a critical process in completing the assessment roll.
Beginning mid-July Riverside County property owners will be able to view their 2014-2015 roll value online at www.riversideacr.com.
Properties can be searched by address or parcel number. Property owners whose assessed value has changed this year will receive a notice from Ward in their regular 2014-2015 tax bills, which will be sent in October by Treasurer-Tax Collector Don Kent. (The attached file includes a full report on assessed values in cities and unincorporated areas, as well as historic data on assessed values in Riverside County.)
Property owners who disagree with their property’s assessed value may file a free decline-in-value application online. Applications are due by Nov. 3 and are available at www.riversideacr.com.
Property owners disputing the value set by the Assessor’s office may file an appeal with the Riverside County Clerk of the Board until December 1. An application to appeal a changed assessment is available on the Clerk of the Board’s website at www.rivcocob.org.
For more information, visit www.riversideacr.com or call (951) 955-6200 or toll free (800) 746-1544.