San Francisco Assessor-Recorder Phil Ting announced Thursday that the value of the city’s real estate grew by nearly $2 billion in the past fiscal year, a contrast to decreasing property values in most other parts of California.
The total roll assessment value, a combination of residential and commercial property values, grew by 1.3 percent to $163 billion during the fiscal year that ended June 30.
“We’re very, very fortunate in San Francisco,” Ting said. “We still have the strongest real estate market in the state.”
He said many homeowners are still worried about the real estate market but predicted “we’re going to see a continued resurgence” in the coming years.
Daniel Cressman, executive vice president of the commercial real estate company Grubb & Ellis, said the value of the city’s commercial properties are doing particularly well.
San Francisco is “one of the very few markets in the entire country where investment demand for commercial office space is far outstripping the available supply that’s for sale,” Cressman said.
That has led to property value increases of up to 40 percent in recent years, he said.
John Lee, the former president of the San Francisco Association of Realtors, said the residential market is not doing as well, particularly for middle-class homeowners.
“People worried about jobs can’t commit to a long-term financial obligation,” Lee said.
He said, “I think the worst is behind us,” but predicted the next few years for the market will probably be about the same as the past one.
About 18,800 owners of single-family homes received a one-year temporary reduction last year in the assessed value of their properties, saving them a combined $27 million in taxes, Ting said.
Dan McMenamin, Bay City News