SAN JOSE -- There was further evidence Monday that Silicon Valley's surging economy is having a positive effect on local property values.

California's State Board of Equalization announced that Santa Clara County's 8.3 percent growth in assessed residential and commercial property values for 2013-14 is the highest in the state.

"Santa Clara County tends to lead the way," said County Assessor Larry Stone. "We're the bellwether. I always tell my fellow assessors around the state, 'Just watch us because what's happening to us will be happening to you soon, too.' This has really happened overnight here in just the last 18 to 24 months."

In June, Stone had announced that assessed values in the county had grown by nearly $26 billion over the previous year -- from $308.8 billion in 2012 to $334.6 billion. That marked the second-highest dollar increase in county history.

That increase was twice what Stone's office had projected, and all 15 cities in the county recorded increases of assessed value growth above 6 percent.

"The recovery," Stone said Monday, "is solid and throughout the county."

The reason comes down to one factor: job growth. Stone noted that he frequently travels Highway 237 between Sunnyvale and Milpitas and two years ago he would see six completely empty office buildings.

"Today, every one of them is full and there are seven or eight more Class A office buildings under construction on that corridor," Stone said. "And when office buildings are full, so are apartment complexes."

He added that over the past 18 months, 8,000 apartment units have been completed or currently are under construction in San Jose alone. There are another 5,000 recently completed units in the county built outside the city limits.

Monday's report by the Board of Equalization painted a rosy picture of the state's recovery from the recession. It announced that the property assessment throughout California had grown to more than $4.6 trillion, an increase of 4.3 percent over the previous year. It marked the third consecutive year that the statewide value of property assessed by the county governments and the state had risen.

The increase was reflected throughout the Bay Area. San Mateo (5.7 percent), Alameda (5.0 percent), San Francisco (4.5 percent) and Contra Costa (3.4) counties all saw sharp climbs in assessed values.

"These property value gains after several years of decline are an encouraging sign for our economy and jobs," said George Runner, a Board of Equalization member, in a statement. "I hope this trend continues."

Although this means higher property tax bills for homeowners and businesses, increased values represent good news for schools and local governments that depend on that revenue for a large source of their funding.

One negative to the higher assessed values is that it exacerbates the county's existing problem of lack of affordable housing, Stone said.

"There also is a potential downside in that we tend to overdo things in Silicon Valley," he added. "I'm concerned that the apartment market could get overbuilt quickly. Everything happens so fast in Silicon Valley. We're always first and fastest, good or bad, up and down."

Follow Mark Emmons at Twitter.com/markedwinemmons.