Home values drop in three-quarters of Southern California

Los Angeles Daily News ^ | Jonathan Lansner

[Steely Tom]

More affordable.

[MarlonRando]

so many people refinanced during covid to get the sweetheart interest rates and no one is letting go of those.

[VanShuyten]

At least it doesn’t sound like the rest of the country is going to be forced to bail out California banks for underwater mortgage loans.

[avital2]

since real estate wasn’t selling here in L A with sky-high prices and high mortgage rates, this had to be and will probably be stimulative.if prices are at their clearing price.

[LuxAerterna]

Prices are declining because the state is becoming a less desirable place to live.

[WashingtonSource]

Trump’s deportation of illegals is reducing demand for housing

[Tax-chick]

Change the headline from “home values” to “housing prices,” and it’s a totally different vibe.

[SmokingJoe]

Kicking out huge numbers of illegals will do that for you every time.
Thank you President Trump.

[mewzilla]

Bet property taxes haven’t.

[mewzilla]

Not in a property tax state.

[Tax-chick]

Your property taxes don’t go up because your current market price falls. Current market price only matters if you’re trying to sell, and if you sell your house, then you no longer have to pay the property tax on it: the new owner pays.

[mewzilla]

In my neck of the woods people can’t sell homes thanks to confiscatory property taxes.

Even buyers who can afford the mortgage don’t want to risk having to sell at at a loss because of the property tax burden.

[mewzilla]

Here’s a question...

Are assessments falling?

Cuz I’m betting they haven’t...

[mewzilla]

Just an abstract from a 2019 paper, but the abstract nails it, and not just for Italy...

Consumer Spending and Property Taxes

...A tax hike on the main dwelling leads to large expenditure cuts among mortgagors, who hold low liquid wealth despite owning sizable illiquid assets. In contrast, higher tax rates on other residential properties affect affluent households, thereby having a modest impact on their consumer spending...

[Tax-chick]

Southern California, thanks to long-ago Proposition 13, does not have similar property tax issues.

[EliRoom8]

Prices are declining because the state is becoming a less desirable place to live.
True.

[Parley Baer]

My neighborhood here in SoCal seems to be holding steady.

[Ex-Con777]

I’m too lazy this morning to figure it out, but 15% equity in 12 years sounds like being underwater on a 30 year mortgage.

Considering 2-3% closing costs and 6% realtor fees, selling doesn’t look lucrative.

EC

[Miami Rebel]

Florida home prices are in decline too, especially the west coast.