Gilroy
– The city’s property is worth a pretty penny – one of the
prettiest in Santa Clara County.
In the annual report recently released by county Assessor Larry
Stone, Gilroy rounds out the top three of the county’s 15 cities
that experienced growth in total assessed property value, topped
only by Los Altos Hills and Los Altos
– two of the wealthier cities in county.
Gilroy – The city’s property is worth a pretty penny – one of the prettiest in Santa Clara County.
In the annual report recently released by county Assessor Larry Stone, Gilroy rounds out the top three of the county’s 15 cities that experienced growth in total assessed property value, topped only by Los Altos Hills and Los Altos – two of the wealthier cities in county.
The assessment roll accounts for the value of all residential and commercial property as of Jan. 1, and property taxes are paid according to assessed value. Public education received more than half of the county’s total property tax revenue allocation this year. Redevelopment agencies and the county each received 12 percent, while cities and community colleges each received 9 percent. The remaining 6 percent went to special districts.
Gilroy’s 7.28 percent change from last year looks bright, especially in comparison to the “golden triangle” cities of Sunnyvale, Santa Clara, Milpitas and Mountain View, all of which experienced a negative decline.
Los Altos and Los Altos Hills saw 7.58 and 8.31 percent growth, respectively, while Morgan Hill slid in just behind Gilroy at 7.16 percent.
The city’s residential real estate prices are a testament to its healthy property values. The average price of a single-family home jumped $151,000 from last year and almost $307,700 from six years ago, while the average price of a condo or townhouse rose $90,775 from last year and almost $182,000 from five years ago.
Jennifer Galindo, a sales and business consultant with First American Title Insurance Co. in Morgan Hill, said that while homeowners are embracing the news, the outlook for prospective homebuyers is dismal.
“It’s always somebody’s market, and right now it’s a seller’s market,” Galindo said. “The sale price of a home in Gilroy is 99 percent of the list price. In a normal market, sale prices are 90 percent of the asking price. So in Gilroy, it’s a great thing if you’re looking to sell your home right now. You’re likely to get almost entirely what you ask.”
As evidenced in previous years, Gilroy’s location is prime for people who work in other parts of Silicon Valley but can’t afford or don’t want to live there. Living in Gilroy might become even more appealing with the development of Coyote Valley, the 7,000-acre stretch of land between San Jose and Morgan Hill, Galindo said.
“People are starting to think, ‘Well, once Coyote Valley goes in, commuting from Gilroy will be a piece of cake,'” she said.
Along with the increasing attraction of residential property, Stone credited Gilroy’s boost to its two new retail centers, Pacheco Pass Center and Gilroy Crossing near U.S. 101 and state highway 152. Additionally, Gilroy’s diverse economy, which draws from both agricultural and industrial production, provides the city with a broad economic base, Stone said.
As for the future of Gilroy’s property values, Stone said it’s difficult to make any sure predictions, but residents would be wise to look north.
“When things happen in Silicon Valley, they happen very quickly and usually affect the entire county,” Stone said. “Gilroy and Morgan Hill folks should look at what is happening in north county, and they’ll get an idea of what might happen in their areas.”
