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

To: Skeeter Bug who wrote (205272)	5/30/2009 11:34:45 AM
From: Steve_C	Read Replies (2) \| Respond to of 306849

Don't be dumb. <<<<<<increasing the cost of owning a home would lead to less demand for homes, which leads to more supply of homes, which leads to lower home prices.>>>>>>> Property taxes pay for services - therefore the "product" you are paying after a repeal of Prop 13 is materially different. If you want to do a complete analysis of the situation you should do one. for instance, before Prop 13, some of the highest property tax communities (by percentage) were those with the highest home values. This is the exact opposite of what you think above. Given that the lock-in effect of prop 13 isn't very high, there simply aren't tens of millions of homes that will see "dramatic" increases in taxes. At the most were talking a one-time drop in prices in the 1% to 3% range. That's not "tanking" to me. I've seen estimates on this boards as high as a 67% drop - total lunacy.