As long as none of our Senators put the progeny of Prop 13 (Props 58 and 193) “on the table” for examination of their far-reaching effects by the CA Legislature (for a possible repeal of the measures), the beat will go on. These prime properties, as they stand, are worth FAR MORE to their pre April ’78 owners, children, grandchildren and/or heirs than any subsequent “arms-length” owner. Unless the original prop 13 owner(s) die while in residence and their property is sold by out-of-county heirs who have no desire to move back to SD County (or that particular property) or none of the heirs can buy the other(s) out (if the family home is bulk of the estate), then I believe the majority of these properties will stay within the family. I have even seen these properties inherited from parents and then quit-claimed to an unrelated spouse in a divorce settlement, never triggering a reassessment!
This situation is very unfair to any current owner purchasing AFTER April ’78 (esp those who purchased >2000) or potential owners. “Prop 13 benefits” should have died with an affected property’s original owners. It should never have been allowed to be passed thru in life or death as its sole function was to keep retired senior citizens in their homes until they sold or died. Now, able-bodied heirs of ALL ages enjoy this benefit while the rest of us pay 1% of currently assessed value (+ local fees and voter-approved bonds)!
This legislative blunder is the greatest systemic cause of what you are seeing as “the best properties never moving,” IMO.
I believe it is rare when a truly “valuable property” in CA’s best zip codes actually comes on the market. Even for a cash buyer, a HUGE deterrent is both current and rising taxes (if and when values go up again) :=(
