Starting this month, county assessors throughout the state are beginning the annual process of recalculating property values. Kathy Kelleher is the Sacramento County Assessor. She says last year alone, the county saw a $3 billion decline in property values because of the declining real estate market.
"We've been experiencing a decline for the last three or four years now. This year, we have the inflation factor on our side."
She says that inflationary factor may increase the value of some people's homes…but only slightly.
"They may have a, say a 1975, a 1980 base year value. So their assessed value is still significantly lower than market value. And those properties will get inflated at a slight increase based on the consumer price index."
Kelleher will release the assessed property values in July. She expects to reduce the value of 160,000 residential properties…about the same number as last year.