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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (34615)	6/29/2005 10:27:36 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 306849

RE:">>>>>Where do you think housing prices would be without the lifted limiting factors afforded by prop 13?<<<<< Right where they are now." OK then, repeal prop 13 and let property taxes adjust to current home values. Then see what happens to home prices in California. Wooosh. People taxed right out of their homes. Huge inventory rise. Crash.

To: David Jones who wrote (34615)	6/29/2005 11:33:15 AM
From: Schnullie	Read Replies (1) \| Respond to of 306849

<<Where do you think housing prices would be without the lifted limiting factors afforded by prop 13? Right where they are now.>> Very unlikely. Bear in mind that annual increases in property taxes were typically in double digits prior to passage of Prop 13. In the year preceding passage of Prop 13, the increase was a ball-busting 28%(!) OUCH! For today's typical $800,000 3BR/2BA in the Bay Area, this would have resulted in an annual increase of several thousand dollars. These are real dollars that probably would have acted as a natural check on housing prices. Although it would have uncorked a very different demon.....exorbitant bloated government with massive inefficiencies.