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

To: damainman who wrote (242728)	3/30/2010 1:40:40 PM
From: GST	Read Replies (2) \| Respond to of 306849

I think Proposition 13 has inflated California housing prices, and as California goes broke it will eventually have to change Proposition 13 whether people like it or not. That in my view will have a depressing effect on housing prices for many year -- or at least that is how I see it. Proposition 13 provides a strong incentive for people to hang on to their house even if they move out of state -- it keeps them in a low tax bracket, or at least it did that in the past, and leaves the door open for them to return. The places in California that have been hardest hit are the more marginal areas where people who could not afford a good location were forced to move into -- and then they got wiped out. This is not to deny a healthy plunge in prices across the entire state, but you will see very different patterns of vacancy from one area to another.