Property Tax Fairness Initiative Update
Earlier this year, the California Association of Realtors (C.A.R.) began the historic effort to address California’s unprecedented housing supply crisis as well as to increase homeownership opportunities for Californians by gathering nearly 1 million signatures—enough to qualify the Property Tax Fairness Initiative for the General Election Ballot.
The initiative would eliminate the “moving penalty” for seniors 55 and older, the disabled, and victims of natural disasters, allowing them to carry their current Proposition 13-protected property tax assessment level to another home of any price, anywhere in the state, any number of times.
The November 2020 ballot initiative will move portability forward while at the same time generating revenue for schools and local governments by: 1) requiring reassessment in connection with inter-generational transfers where heirs keep property for investment purposes; and 2) tightening up the reassessment law to address corporate property transfers where “creative” efforts are used to avoid reassessment.
Big 3 Factors Driving Housing Demand
As if California isn’t fascinating enough to us all, the housing market here is the talk of the real estate world as well.
Along with becoming the 6th largest economy, California’s housing market has been the best performing of any and that’s music to the ears of investors. California has less owners with negative equity and fewer delinquent mortgages.
For the first time in 11 years, the statewide median home price in California surpassed its previous peak and rose to $600,860, which was recorded more than 10 years ago during the last housing boom. The median home value in the United States is $216,000.
76% of the highest priced real estate markets in the USA are in California.
Keep an eye on these key projected figures. Governments will have to raise mortgage rates, reduce tax benefits, and stiffen mortgage qualification rules to discourage buyers.