Piedmont Market Update - July 2024

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Notices of Assessed Value Have Arrived What do they mean for homeowners? Most Piedmont homeowners received a “Notification of 2024-2025 Assessed Value” from the County of Alameda last week. The notices are mailed each year to inform homeowners of their home’s current assessed value. When you buy a home in California, the assessed value is equal to the purchase price. In the following years, the assessed value can increase according to the rate of inflation or the California Consumer Price Index (CCPI). Each fiscal year, the Assessor compares the factor Proposition 13 base year value to the current year market value and enrolls the lesser of the two. If the Assessor believes the mandatory CCPI of 2% is less than the January 1, 2024 “market value” of your property, this is the factor that they will use. Because of recent market shifts, if you purchased your home in the last several years, you may have seen a decrease in your home’s market value. If you have received an Assessed Value that does not seem correct and would like our help to determine whether it may be a candidate for appeal to the Alameda County Appeals Board, you are welcome to give us a call. In the first half of 2023, the average dollar per square foot value of Piedmont home sales decreased 8.5% from the first half of 2022. We saw a slight decrease again in the first half of 2024. These decreases are likely due to the dramatic rise in interest rates during 2022. Other Reasons for a Change in Assessed Value: During ownership, there could be other reasons for an

assessment notice, such as: A remodel where square footage is added. The complete remodel of a kitchen or bath with upgraded fixtures/appliances. Following the death of an owner to step up the tax

basis. Transfers between a husband and wife and between parent and child if the property is the primary residence of the transferee. Total Piedmont Sales Trending Downward Since 2021, we have seen a notable decrease in the number of Piedmont sales in the first half of the year, year over year. In the first half of 2024, compared to the first half of 2021, the number of Piedmont sales fell 42%. Interest Rate Update Industry expectations are that interest rates will trend downward over the next year. “On Wednesday, July 17, 2024, the current average interest rate for the benchmark 30-year fixed mortgage is 6.86%, decreasing 12 basis points from a week ago.