Property Values Decline In Palm Desert

Palm Desert's property values declined 4.61 percent since last year, but fared better than other Coachella Valley cities, according to a report by Riverside County Assessor-Clerk-Recorder Larry Ward.

The city of Coachella saw the biggest aggregate drop in values -- 6.39 percent. Indio was just behind it, with a 5.93 percent decrease, followed by La Quinta, where values dropped 4.96 percent, the report stated.

This was the third straight year that residential and commercial property values declined in Riverside County.

"From the peak in 2008, we have lost almost $38 billion from the assessment roll,'' Ward said in an introduction to his 16-page report. "While there are a few glimmers of hope, Riverside County continues to struggle with a troubled real estate market.''

According to the assessor's office, the roll fell from $208.2 billion to $205.1 billion -- a difference of 1.45 percent -- between 2010 and 2011. That compares to a 4.25 percent drop between 2009 and 2010, and a 10.5 percent decline between 2008 and 2009.

In the years 2000 to 2007, aggregate property values increased by double digits every year, according to the figures. More than 80 percent of the county's general fund income is derived from property taxes.

According to Ward, 304,000 residential properties and 3,230 commercial units received reduced valuations this year under Proposition 8, which requires that a property's value be adjusted based on local market conditions.

City News Service contributed to this report.