If they repeal Prop 13, I don’t think you’d see that big of a drop in price. NJ and NY have very high taxes. Unless you’re living in the sticks of those states, their homes aren’t exactly cheap.
Regardless of Prop 13, we are still California and there’s not a shortage of people that want to be here. That keeps it high. But what it really boils down to is what people can afford. That is the bottom line. And during the bubble, people foolishly bought homes they couldn’t afford. Different story now.
I don’t think this ride is over yet, so I think prices will still slowly decline. But as far as getting rid of Prop 13 b/c that will bring prices lower, I don’t think that is true. It will be a deterrent to buying/owning, but it will come down to affordability. It will be less of an incentive and retired people will have to reconsider b/c that aspect won’t be appealing.
It would hurt many people more than it would help people, IMO. It will definitely NOT help the economy, as people who stay will have less money to spend b/c of higher taxes going to fill the deep well of government deficit.
