People tend not to downgrade, at least in CA because of Prop 13 [1] which, for those of you not familiar with CA politics, more or less freezes housing taxes wh

People tend not to downgrade, at least in CA because of Prop 13 [1] which, for those of you not familiar with CA politics, more or less freezes housing taxes while you own the home. Thus giving people who have large amounts of housing price appreciation an enormous incentive not to downsize -- if you've owned a home long enough, you could buy a home worth significantly less and end up paying significantly more in taxes. [1] http://en.wikipedia.org/wiki/California_Proposition_13_(1978) http://en.wikipedia.org/wiki/California_Proposition_13_(1978...