The property industry’s situation in California right now is due to land not being available in good locations, like in San Francisco and Los Angeles, where the costs are too high. Along with this there are also delays in construction, which results in many people simply renovating their homes instead of relocating. Proposition 13 made it too expensive for people to move, despite future property tax being set at no more than 2%. There is an exception that happens when homes are sold and reevaluated based on their price at the time. The annual totals are impacted by the seasonal changes in California, as most properties sell in June and December. Other influences include negative equity status, interests rates, and large foreign investments among others.
Entrepreneur & Investec Real Estate Founder