Property Values Rise Average 10.3%

Although individual cities varied, the average assessed value of real estate in South Bay cities increased 10.3% in the last year--one-tenth of a percent more than the 10.2% increase in assessed valuation countywide.

Every year, the Los Angeles County assessor’s office determines how much property values have changed. Those values are used to determine property tax bills. A city’s total valuation also indicates overall trends in land values.

In the South Bay, the assessed valuation rose from $35.9 billion in 1987 to $39.7 billion in 1988.

The largest increase came in Torrance, where the valuation rose from $7.54 billion to $8.21 billion, an increase of about $669 million.

But while Torrance had the largest increase in dollars, its percentage increase of 8.9% was below the county average. Carson led the area in percentage increase with a 13.8% rise, from $4.44 billion to $5.06 billion.

The Carson increase, which is the seventh-largest in the county, stemmed from construction of new warehouses and from an intensified effort to catch up on a backlog of new construction from prior years, according to the assessor’s office.

Carson Community Development Director Pat Brown said warehouses had recently been built on Wilmington Avenue north of 190th Street, near the intersection of Figueroa Street and Broadway and off Wilmington Avenue between Carson Street and the San Diego Freeway.

The smallest percentage increase in assessed valuation among South Bay cities was in Avalon, which increased only 7.1%. The Avalon valuation, which was the seventh-smallest increase in the county, rose from $184.4 million to $197.6 million. The assessor’s office said Avalon had lower-than-average new construction and property transfers.

Increases in valuation typically stem from new construction and from sales of properties. Under Proposition 13, properties that change hands are reassessed at the sales price; the value of other properties goes up 2% unless there has been an addition or other improvement, which can trigger a higher increase.

Because the 2% inflation factor has lagged far behind the increase in real estate prices, a recently purchased house may get an assessment several times higher than a house next door that has not changed hands for many years.

ASSESSED VALUES FOR SOUTH BAY CITIES

The following two-year comparison of assessments does not include State Board of Equalization-valued properties--primarily public utilities--exempt properties, such as churches, hospitals and schools, or unincorporated areas, such as San Pedro, Wilmington and Harbor Gateway.

Assessed Valuations

City 1987 1988 Increase Avalon $184,429,439 $197,610,503 $13,161,064 Carson $4,442,113,751 $5,056,109,032 $613,995,281 El Segundo $4,438,672,971 $4,906,048,037 $467,375,066 Gardena $1,528,477,482 $1,679,931,121 $151,453,639 Hawthorne $2,359,935,361 $2,593,776,809 $233,841,448 Hermosa Beach $982,432,810 $1,084,251,546 $101,818,736 Inglewood $2,352,236,699 $2,562,955,173 $210,718,474 Lawndale $639,939,725 $710,863,780 $70,924,055 Lomita $565,752,752 $619,044,818 $53,292,066 Manhattan Beach $2,553,754,545 $2,819,522,371 $265,767,826 Palos Verdes Estates $1,295,822,241 $1,434,075,601 $138,253,360 Rancho Palos Verdes $2,589,435,012 $2,889,658,552 $300,223,540 Redondo Beach $3,400,801,482 $3,735,800,220 $334,998,738 Rolling Hills $295,858,747 $328,254,026 $32,395,279 Rolling Hills Estates $775,590,078 $833,837,879 $58,247,801 Torrance $7,539,962,533 $8,209,243,031 $669,280,498 *Total $35,945,200,000 $39,661,000,000 $3,715,800,000

City % Avalon 7.1 Carson 13.8 El Segundo 10.5 Gardena 9.9 Hawthorne 9.9 Hermosa Beach 10.4 Inglewood 9.0 Lawndale 11.1 Lomita 9.4 Manhattan Beach 10.4 Palos Verdes Estates 10.7 Rancho Palos Verdes 11.6 Redondo Beach 9.9 Rolling Hills 10.9 Rolling Hills Estates 7.5 Torrance 8.9 *Total 10.3

* In round numbers.

Source: Los Angeles County assessor’s office