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To: Zeuspaul who wrote (5137)	9/24/1998 9:09:00 AM
From: j_b	Respond to of 67261

OT*** Prop 13 <<Things should be done on a local level to address the local housing issue.>> I absolutely agree. That was my point regarding the rise and fall (and rise) of prices in the Silicon Valley. The increases are related to the job market and to a large one-time pool af available funds to use for down payments. It's like giving large salaries to entertainers - the first thing they do is go crazy spending money. People in the valley were the beneficiaries of large chunks of money from IPO's or stock options, and rather than put the money toward their retirement, they bought houses. Because they had so much cash, they were willing to bid up the prices. Not related to Proposition 13 at all, but to market conditions. The pricing you describe for Long Beach is similar to what you would have found in San Diego (for a slightly larger home). In other parts of California that are not as industrialized or have not seen the job growth, there has probably been even less appreciation.