I mostly agree with bob007. In the grand scheme of home prices, prop 13 is a bit player.
However, I believe that it does suppress both the overall supply of homes and the pool of potential buyers by incentivizing people to stay in their low-cost-basis house rather than moving. This reduces the overall numbers on both the supply and demand side. This impacts the overall potential volume of sales, which is correlated with price.
But other factors are more important.
