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House prices are not determined solely by the seller's feeling of what they ought to get. Demand matters. Assuming demand is either constant or increasing, th

House prices are not determined solely by the seller's feeling of what they ought to get. Demand matters. Assuming demand is either constant or increasing, thus the current problem, then supply must go up for prices to go down. Supply can be increased in two ways. First, by building more houses and second by people leaving the area. Prop 13 only reduces supply if it discourages people from leaving the area. If people move within the same area then supply stays the same. So, are you saying that you want to repeal prop 13 to drive people out of the Bay so that others can move in?

ubernostrum 8y ago
House prices are not determined solely by the seller's feeling of what they ought to get. Lucky for me I didn't make that claim, then!
- jcoffland 8y ago
  You did say: > Second, it causes people who do sell to ask a higher price, in compensation for the tax benefit they're giving up by selling. To me this implies that the seller can increase the sale price if they think they deserve more money.
  - ubernostrum 8y ago
    You inserted the word "solely", which is utterly unsupported by what I said, and seems pretty clear evidence of your intent not to engage with what I actually said. So I'm not going to bother trying to explain to you.
    - jcoffland 8y ago
      Wow, that got combative quickly. I think if you could have heard my tone you wouldn't have been offended.
TheCoelacanth 8y ago
Something that decreases the willingness of sellers to sell will increase the price. That is basic supply and demand. If a retired couple downsizes from a three bedroom house to a one bedroom apartment because their kids have grown up, that frees up housing for someone else to use. Prop 13 discourages them from doing that because the property taxes on a one bedroom apartment at a 2018 assessment can easily be many times higher than the property taxes on a three bedroom house at a 1970 assessment+2%/year.

ubernostrum 8y ago

House prices are not determined solely by the seller's feeling of what they ought to get. Lucky for me I didn't make that claim, then!

jcoffland 8y ago
You did say: > Second, it causes people who do sell to ask a higher price, in compensation for the tax benefit they're giving up by selling. To me this implies that the seller can increase the sale price if they think they deserve more money.
- ubernostrum 8y ago
  You inserted the word "solely", which is utterly unsupported by what I said, and seems pretty clear evidence of your intent not to engage with what I actually said. So I'm not going to bother trying to explain to you.
  - jcoffland 8y ago
    Wow, that got combative quickly. I think if you could have heard my tone you wouldn't have been offended.

TheCoelacanth 8y ago

Something that decreases the willingness of sellers to sell will increase the price. That is basic supply and demand. If a retired couple downsizes from a three bedroom house to a one bedroom apartment because their kids have grown up, that frees up housing for someone else to use. Prop 13 discourages them from doing that because the property taxes on a one bedroom apartment at a 2018 assessment can easily be many times higher than the property taxes on a three bedroom house at a 1970 assessment+2%/year.