The Property Tax Fairness Initiative

The California Association of REALTORS® (C.A.R.) is embarking on an historic effort to increase homeownership opportunities. C.A.R. is going to qualify an initiative - the Property Tax Fairness Initiative - for the November 2018 ballot which will allow senior homeowners (55 years of age and older) among others to keep all or most of their Proposition 13 property tax savings when they move.

I think this is important, because seniors, who are often on a fixed income, fear they will not be able to afford a big property tax increase if they sell their existing home and buy another one, discouraging them from ever moving. As a result of this “moving penalty” almost three-quarters of homeowners 55 and older haven’t moved since 2000. C.A.R.’s portability initiative would allow senior homeowners to transfer their property tax base from their current residence to a replacement residence located anywhere in California.

The measure, if approved by voters, will let thousands of seniors, currently “locked into” their homes by low property tax rates purchase a home that will better suit their needs while expanding the housing inventory for young families seeking to buy a home.  According to the California Legislative Analyst's Office, tens of thousands additional homeownership opportunities will occur annually.

The initiative would remove the “moving penalty” for seniors 55 and older, and also for 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.

Let me know if you are interested in more information on this subject or if you would like to sign a petition to place this initiative on the November ballot.

Thank you for reading!

Francis

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2013 Cal. Annual Housing Market Survey

The Annual Housing Market Surveys conducted by the California Association of Realtors is always full of interesting tidbits, some of them not so small in fact.  All these facts, figures, percentages are fascinating if you like figures. 
-- If you are not so much interested in the statistics of the California real estate market, I would skip this blog.
If on the other hand you are curious about it, with a macro vision of the market, it yields some interesting thoughts and points.  Here it is:

C.A.R. Releases “2013 Annual Housing Market Survey”

Nearly half (49.5 percent) of all homes sold in 2013 were sold above asking price, nearly twice the share in 2012 (25.9 percent) and triple the share in 2011 (16.6 percent).  The 2013 figure was more than twice the long-run average of 18 percent during the past 20 years.  For homes that sold above the list price in 2013, the median premium paid over the list price was 4.8 percent, unchanged from 2012.  Note: in Palo Alto, the average ratio of Sales price over List price is 111.7%.

For the third consecutive year, an increasing number of home sellers – nearly half – planned on purchasing another home in the future.

The shortage of housing supply intensified further this year, leading to heightened market competition and more multiple offers, with more than seven of 10 home sales (72 percent) receiving multiple offers in 2013, up from 57 percent in 2012.  The 2013 figure was the highest in at least the past 15 years, with each home receiving an average of 5.7 offers, up from 4.2 offers in 2012 and 3.5 offers in 2011.  Note: in Palo Alto and Los Altos, 10 to 20 offers are fairly common.   

The distressed market continued to be the most competitive segment of the market, with more than 9 in 10 (91 percent) real estate-owned (REO) properties attracting multiple offers, an increase from 71 percent in 2012. The short sale market was less intense than the REO market, but still 3/4 of all sales received more than one offer, a jump from 66 percent in 2012.  There is no "deal" in the local real estate market...
Close to seven of 10 equity sales received multiple offers in 2013, a surge from 51 percent in 2012.
More information on the CAR website.

Francis
Silicon Valley real estate specialist
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A place worth noting: Our Brother's Home in MountainView