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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (114143)	5/23/2012 11:12:33 PM
From: tejek	Read Replies (1) \| Respond to of 149317

By reducing taxes it encouraged people to trade up..........they could afford a more expensive mortgage and encouraged others to get into the housing market so they could take advantage of the reduced assessments and taxes. But if they sell to the entry level buyer and move up then neither benefits from prop 13 in today's higher priced most desired areas. In essence would be the opposite as they now have to subsidize those that stay put forever which is what i thought was a big driver in limiting supply.. Of course we are probably talking entry level of $350k+ which would be a McMansion in most of the south. Part of it was supply.........supply was reduced first by people staying put and later by environmental restrictions and a shortage of land. It introduced a level of speculation that had not been seen before in the CA market. Prior to 1975, CA was more like FL.......supply frequently was greater than demand.....prices usually tracked the US housing market. That changed after prop 13.........it helped make housing more a commodity than a long term investment. Again, Prop 13 was not the only causation.......there were other factors at play. And Prop 13's real sin is not how it effect housing prices but what it did to the CA budget and taxation process. I have said this before........wealthy CA has a budget that has been placed on a starvation diet..........and it shows. Its the main reason why I left the state..........and now they are trying to do the same thing here.