Another reason to follow the election results

Dated: November 1 2020

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One reason why there are not as many Southern-California houses for sale as buyers would like is that—based on the passage of Proposition 13 in 1978—long-time homeowners pay very low property taxes. There are many older homeowners who would like to sell the house where they raised their family and move into a better-fit place for their retirement years, but are currently holding back because a newly-purchased home will involve a big hike in their annual property taxes. Under current law, there are some limited exceptions for avoiding this sudden expense. One of the propositions on the California ballot this week would expand those exceptions in several ways, and probably help ease our current inventory shortage.

Proposition 19, if passed, will lead long-term homeowners to sell more readily, which will create more opportunities for others to sell and buy up. The ripple effect will also create more inventory of homes for first-time buyers. This proposition is one to watch if property tax rates have made you reluctant to move into a different home. If you are anticipating using an inherited home as a rental property, you’ll also want to see if it passes, because one of its terms would lead to higher taxes on a property in that category.

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DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

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