The property industry in California is impacted by the lack of undeveloped land, especially in Los Angeles and San Francisco where the costs are too high. Along with that, new projects are often postponed, Kenny Slaught explains This makes homeowners renovate their current homes and avoid moving out. Proposition 13 made it too pricey for people to relocate to other areas. While future property tax should not go higher than 2%, an exception happens when a sale takes place and the property is reevaluated by its present price. The totals per years are influenced by the seasons, as most homes in California sell in December and June. Along with that, the jobs of the homeowners, negative equity status, asking prices and large foreign investments also impact the yearly totals.
Read more: https://finance.yahoo.com/news/kenny-slaught-provides-insight-changing-034500364.html