By HOWARD FINE

Staff Reporter

As L.A. County’s assessed property values soared more than 9 percent in 2006 to top $1 trillion for the first time, one exclusive corner of the county lagged: the Palos Verdes Peninsula.

While some exclusive areas like Malibu and Hermosa Beach saw substantial jumps in their assessed property values, all four communities on the peninsula registered increases that were well below the countywide average of 9.3 percent, according to the annual property assessment roll released last week by County Assessor Rick Auerbach.

In fact, the cities of Rancho Palos Verdes and Palos Verdes Estates saw the lowest percentage increases 5.4 percent and 5.5 percent respectively among all the county’s 88 cities. The other two cities, Rolling Hills and Rolling Hills Estates, saw increases of 7 percent and 6.5 percent.

Auerbach said a sharp drop in home sales volume in the largely residential communities on the Palos Verdes Peninsula was the main culprit for the small increases in assessed values there. Under Proposition 13, the increased in assessed value of residential properties is limited to 2 percent a year, until the property changes hands, at which time it is reassessed at market value. So if sales volume rises or falls substantially, that has a disproportionate effect on overall assessed values.

Part of the reason for this may be the more conservative nature of the communities atop the peninsula.

“People buy with the intent to stay here. You don’t see rapid turnover and you generally don’t see huge amounts of speculation,” said Kevin Moen, branch manager for the Palos Verdes/South Bay office of Coldwell Banker’s residential brokerage.

Moen said that last year, most residents simply held on to their homes unless they had to sell in a short time-frame. Then, the sellers often had to settle for less than they would have liked.

Even today, as activity has picked up slightly over last year’s levels, only 190 homes are on the market on the entire peninsula, which consists of nearly 24,000 single-family residential parcels.

This is quite different from the speculation in high-end homes elsewhere along the coast and the rapid turnover in communities filled with celebrities, especially Malibu, Brentwood, Beverly Hills and the Hollywood Hills.