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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (55885)	3/13/2006 8:17:51 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

It will take a long time for Orange County inventory to climb. Their property tax structure has the effect of keeping people in their homes. Under Prop 13, property taxes are fixed at the value you paid subject to a 3% annual increase. If you move, you property taxes at fair market value. Let's say a person bought a $500,000 house 10 years ago. That house is easily worth $1.5 million today. The property taxes on the existing house probably run about $6,000 per year. If they want to sell for $1.5 million and move up to a $2 million house, the property taxes on the new place will run about $24,000 per year. Unless a person wants to leave the area, I wouldn't expect too many people to sell their home.