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

To: Steve_C who wrote (205370)	5/30/2009 11:50:20 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

Steve, I just said the drop would take a SHorter amount of time should prop 13 be repealed. Rest assured it won't be repealed very soon.

To: Steve_C who wrote (205370)	5/31/2009 1:23:47 AM
From: pheilman_	Read Replies (1) \| Respond to of 306849

My only question was on what basis you can say a repeal of prop 13 would cause a drop in prices of 67%. I think the original statement was the repeal of prop. 13 would cause the total drop to quickly be 67%. 67% was likely just an approximation of 2/3rds. Anyway, it seems that microeconomics isn't really your strong point. AT THE MARGIN, some number of home owners in CA are able to stay in their homes only due to prop 13. If it is repealed they will need to sell, AT ANY PRICE, they can't afford the tax. Example: Giovanna Croaro, worked as a maid and bought 3 houses in San Mateo, Half Moon Bay and Redwood City. For about 12K each. Current value, 600-800K each. She cannot afford the property tax and would need to sell AT ANY PRICE. That action, at the margin, would rip the faces off the other home sellers.