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County Assessor Larry Stone is optimistic — but with caution — about Silicon Valley’s real estate market.

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Silicon Valley’s real estate market may have finally hit bottom, according to a report from County Assessor Larry Stone.

In total, the net assessed value of all real and business property increased slightly from $296 billion to $299 billion, a 0.88 percent increase.

“Compared to the last three years, this very small increase in property assessments provides encouraging news, and hopefully signifies the beginning of a positive trend out of the depths of the Great Recession,” Stone said. “However, when considered in the context of recent history, it is the third-worst assessment roll growth on record during my 16-year tenure as County Assessor.”

Growth resulting from new construction also recorded a small improvement over historic lows in 2010, the report shows. While the number of newly constructed properties declined 14 percent, the assessed value per building permit soared 50 percent, suggesting renewed confidence in Silicon Valley’s economic future.

While the county assessment roll increased, there were major geographic differences. Cities including Los Altos Hills and Los Altos experienced solid growth at 3.81 percent and 3.59 percent, while Milpitas was negative at -3.48 percent.

In the county’s 13 high school and unified school districts, six posted assessment roll growth slightly less than the County’s 0.88 percent. Ten districts were between -0.74 and 1.65 percent. Only Milpitas was significantly lower at -3.48 percent while Mountain View-Los Altos School District posted strong roll growth at 3.29 percent. With a -0.7 percent decline in growth, East Side Union High School District, with one-third of all residential parcels, accounted for 48 percent of all home foreclosures.

Click here to read the full report by clicking on “annual report.”