• California Real Estate Market Updates

  • Evaluating Property Values for Assessment Appeals in 2025

  • What Does the Assessor consider New Construction?

  • Property Tax Advice from ACS

California Real Estate Market Update

The real estate market so far in California is seeing some interesting changes from previous years and the same is true for the micro-market of the Greater SouthBay.  However, this chart shows only half of the supply/demand equation.  What about demand?  Without understanding both sides, one can’t make good decisions about which way the market will turn.  Contact me for the full picture. 

Per Realtor.com's March 28th article on the single-family home market, the supply of homes for sale in California is "surging", 44% higher this February than last February and higher than the national average. The concern is that increased supply coupled with high interest rates might cause the average sale price to decline. 

Per CoStar's research, Los Angeles commercial office leasing is improving for the first time since 2023 and overall vacancy stopped increasing for the first time since 2020. However, overall market vacancy is still expected to climb to 16.5% by the end of 2026.

Per the Los Angeles Times's research from Cushman and Wakefield, industrial properties are poised to see a rebound in leasing, even with tariff activity leasing to some market uncertainty. Year end industrial vacancy was at 4.9% in 2024.

Evaluating Property Values in 2025 click here for free tool

Due to current economic realities such as rising interest rates and higher vacancies in retail and office space, we anticipate there may be a further reduction in property values even when compared to 2024 values, especially for those who have acquired income-producing properties in the past decade.

One of my clients, ACS wants you to know that we are available to review your property values as of the first of the year, and our goal will be to identify if your property may qualify for a one-year Decline in Value from the county Assessor when the Assessment Appeal filing season opens up again in July 2025.

Please reach out to us to discuss, especially if your property has a high vacancy rate.

What does the Assessor consider New Construction?

One of the most common questions that taxpayers have in California is "What does the Assessor consider New Construction?"
Per the California Revenue and Taxation Code Section 70, "new construction" includes:

Any addition to land or improvements, including fixtures
Any alteration of land or improvements that constitutes a major rehabilitation or converts the property to a different use

The California Board of Equalization has a very helpful chart on their website that breaks down the most common questions regarding what new construction is assessable, and what is not. It's helpful to look out when you are planning on doing work on your home, and if you have more specific questions about new construction assessments, ACS can help!

Property Tax Advice from ACS

If you receive a Notice of Supplemental Assessment or a Notice of Escape Assessment, you have 60 days from the mailing date on the notice to file an assessment appeal. If you received a notice you were not expecting, contact ACS for help!

You can reach attorney Robert Slavin for more information: 805.374.9500 x227 - EMAIL ROBERT