The present situation of the real estate market in California happened because land is not easily available, especially in San Francisco and Los Angeles where the costs are too high. Often construction delays also play a part, with homeowners preferring not to move. Proposition 13 made the costs of moving to another area too high, even though future property tax increases should not go higher than 2%. The exception happens when a property is sold and reevaluated by its present price. The annual totals are influenced by the seasonal changes in California, as most houses sell in December and June. Other factors impacting these totals are the jobs of the homeowners, negative equity status, interests rates and large foreign investments.
Read more https://finance.yahoo.com/news/kenny-slaught-historical-events-influenced-215900075.html