Home prices are on the up-and-up in South County according to the Santa Clara County Assessor’s Office, which means property taxes will also soon rise.
Single family homes are up by 14 percent in Gilroy and 8 percent in Morgan Hill from the last two years.
“The information is great news for property owners whose home is likely their single most valuable asset. A significant increase in homeowner equity is always welcome news,” said Assessor Larry Stone in a press release.
But with higher home prices comes higher taxes, and the Assessor’s Office is looking to re-assess properties and end some of the temporary property tax breaks that homeowners enjoyed during the Great Recession when their homes dropped in value.
At the end of June, the Assessor’s Office plans to send 460,000 assessment notices to all property owners in the county.
According to Gilroy home sales data, average price per square foot for a single family home is now $236, up by $39 from $197 in 2011. In Morgan Hill, the numbers hang higher, with average price per square foot at $280, up by $21 from two years ago.
“By providing this information early, we hope to better inform homeowners about changing market conditions in their neighborhood, and prepare them for potential increases in assessed values and property taxes,” Stone said.
The appraisals will factor in many more variables than just current home price sales, such as quality of school district, age, condition of the home and location.
