Renovations Fuel Jump In LA County Property Values
LOS ANGELES (CBS) – If the latest property assessments are any indication, there could be a glimmer of hope for the Southland’s housing market — but only if foreclosures
Valuations in 2011 are up nearly 1.5 percent in Los Angeles County over last year, a somewhat surprising find in a year that has so far seen over 150,000 foreclosures countywide.
While there are still plenty of soft patches in the real estate market, county assessor John Noguez told KNX 1070 he’s encouraged by the latest numbers.
“We are seeing an overall trend in the Southern California market of a positive,” said Noguez. “It is not the 2006 or 2007 values that we had…however over the last two years in terms of those values, they’ve stabilized in many of our communities and they’re now increasing.”
Even with 400,000 homes reduced in valuation, property in L.A. County is still worth over $1.1 trillion.
Noguez said new construction — renovations to existing property rather than new homes — helped add to the increase.
“The new construction search that we have on the newer homes have declined, but we have people saying, ‘You know what, my home is a nice home, I think I’ll just add the extra family room or the bedroom here’,” said Noguez.