[ARCADIA]

A bubble or short term price drop is only detrimental to those who can't hold the investment for at least five years.

I am more concerned with the additional tax burden which may be imposed locally through the reappraisal of existing homes. There are those who purchased well before the bubble, especially our fixed income seniors, who may be forced to sell due to the added burden. That alone could add a cumulative effect, to the other market forces already at work, and push even more homes onto the market.

[surely_you_jest]

I am more concerned with the additional tax burden which may be imposed locally through the reappraisal of existing homes. There are those who purchased well before the bubble, especially our fixed income seniors, who may be forced to sell due to the added burden. That alone could add a cumulative effect, to the other market forces already at work, and push even more homes onto the market.

A valid concern. There are states, however, which ameliorate that impact. Florida has the Save Our Homes constitutional amendment. In essence, the tax valuation of homestead property starts from a baseline at purchase, and then may only increase in taxable valuation at the lesser of inflation, as measured by the CPI, or by 3 %, per year, whichever is less. In Texas, apparently, your tax (or perhaps it is taxable value) on your home becomes fixed when the owner becomes 60 years of age (this, according to my in-laws). Some other states do similar things.