Economy General Property

Most High Desert Home Values Trending Up

By Bob Dutton
Assessor-Recorder-County Clerk
San Bernardino County

As the newly elected Assessor for San Bernardino County, I am very interested in monitoring and taking action to stimu­late economic development in the region. One of the key indicators of the regional growth is the value of the various prop­erty types within the County.

Over the last several years, dating back to 2008, there have been some very dra­matic changes in assessed property val­ue. Before we discuss property value, it is important to distinguish the difference between market and assessed property value.

Market value: The lowest price a sell­er would be willing to receive while at the same time the highest price a buyer would be willing to accept on an open and competitive market.

Assessed value: Value utilized by the As­sessor as the basis for taxation of prop­erty. In California this is constrained by Proposition 13 enacted in 1978.

In the 2007-2008 timeframe, properties within San Bernardino County reached a peak point. However, with the down turn in the economy and the resulting reces­sion, many properties had a dramatic re­duction in value. Properties located in the High Desert area followed this same pat­tern. This region includes the incorporat­ed cities of Adelanto, Apple Valley, Bar­stow, Hesperia, and Victorville, as well as the unincorporated areas of Lucerne Valley, Pinon Hills/Phelan, Wrightwood, Helendale, Hinkley, Yermo/Daggett and Newberry Springs.

When looking at the difference in all High Desert secured property from the peak in 2008 until the low in 2012, there was an overall decrease of 35% in assessed value. The majority of the reduction was felt within residential property with a de­crease of 48.5%. This accounts for 93% (by number of properties) of all property. Commercial, industrial and agricultural property remained relatively the same during this time frame with only slight fluctuation in the assessed value.

Fig 1 Most High Desert Home Values Trending Up

To understand the current trend, we can look at what has occurred in assessed val­ue over the last three years, 2012 through 2014. As shown in Figure 1 (Residential Average Assessed Value), all of the in­corporated cities except Barstow have experienced positive growth in assessed value for residential properties:

  • Adelanto: 14.41%
  • Apple Valley: 11.50%
  • Barstow: (4.93%)
  • Hesperia: 11.80%
  • Victorville: 12.67%

Of the unincorporated areas, some of the residential properties have realized slight growth and others have declined in as­sessed value:

  • Lucerne Valley: 1.41%
  • Pinon Hills/Phelan: 6.89%
  • Wrightwood: 6.82%
  • Helendale: 4.81%
  • Hinkley: (47.75%)
  • Yermo/Daggett: (5.29%)
  • Newberry Springs: (5.18%)

Fig 2 Most High Desert Home Values Trending Up

For commercial properties (e.g., stores) in the incorporated cities, there is mini­mal growth, with the majority realizing a decline in average assessed value as shown in Figure 2 (Commercial Average Assessed Value):

  • Adelanto: (6.99%)
  • Apple Val­ley: (2.32%)
  • Barstow: (2.73%)
  • Hesperia: 5.27%
  • Victorville: 3.21%

Similarly, the unincorporat­ed areas have predominately seen a decrease in the commercial as­sessed average value:

  • Lucerne Valley: 6.46%
  • Pinon Hills/Phelan: (0.22%)
  • Wrightwood: (1.17%)
  • Helendale: (18.63%)
  • Hinkley: (33.41%)
  • Yermo/Daggett: (0.43%)
  • Newberry Springs: 1.71%

Fig 3 Most High Desert Home Values Trending Up

The last area of interest is the industrial properties (e.g., warehouses, manufac­turing, etc.). As shown in Figure 3 (In­dustrial Average Assessed Value, the values for the incorporated cities have stayed primarily the same or had a slight decrease:

  • Adelanto: 6.76%
  • Apple Valley: (0.06%)
  • Barstow: 3.64%
  • Hesperia: 4.62%
  • Victorville: (3.45%)

These trends are also seen in the unincor­porated areas as well:

  • Lucerne Valley: (1.51%)
  • Pinon Hills/Phelan: (4.01%)
  • Wrightwood: 2.47%
  • Helendale: (13.22%)
  • Hinkley: (4.90%)
  • Yermo/Daggett: (8.02%)
  • Newberry Springs: (5.35%)

In summary the outlook for residential property has been positive and shows strong growth, but we are still lagging in commercial and industrial properties. I have a strong interest in working toward economic growth in the High Desert region, as well as throughout all of San Bernardino County. If we can stimulate development in the commercial and in­dustrial properties, it will in turn create additional jobs and provide for even stronger future growth for the residential property values.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.