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I've experienced and heard of this happening in Seattle, Portland, Denver, southern Utah, Las Vegas, Phoenix, and recently here in Dallas.
I think it's a matter of supply and demand, coupled with the assumption that all Californians are equity-rich (which is not true).
In Utah, Las Vegas, and Phoenix, it was a matter of Californians selling their homes at overly-inflated prices just as the real estate bubble was bursting, and using that equity to buy houses outright in those other cities that were not too far from home.
More recently, here in Dallas, Toyota and a few other California-based companies and other out-of-state companies announced they were relocating their headquarters -- and many of their employees -- here.
Real estate prices skyrocketed. The numbers of houses being built skyrocketed. Property taxes skyrocketed.
Builders and sellers asked higher and higher prices, and got them. They're still getting them. In some areas, if you factor in the sometimes tripled (as compared to California) property taxes, house prices are now on par with some areas of SoCal.
(I could actually buy a house for less money in the city I come from in SoCal.)
The market here in Dallas is -- I think -- starting to slow and level out now.
Still, it's sad. Historically, real estate here has always been quite reasonable. But now Ma and Pa Dallas have to sell their house because they can no longer afford the property tax.
My biggest gripe about the whole thing? This isn't California! It really sucks to have to pay California prices without any of the benefits of actually being there.
Being able to afford a really nice house in Dallas was once the trade-off for dealing with heat, humidity, bugs, tornadoes, hail, wind, ice storms, no beach, no mountains, no scenery, and no rolled tacos.
At least the people are nice enough. As long as we don't talk politics!
I've experienced and heard of this happening in Seattle, Portland, Denver, southern Utah, Las Vegas, Phoenix, and recently here in Dallas.
I think it's a matter of supply and demand, coupled with the assumption that all Californians are equity-rich (which is not true).
In Utah, Las Vegas, and Phoenix, it was a matter of Californians selling their homes at overly-inflated prices just as the real estate bubble was bursting, and using that equity to buy houses outright in those other cities that were not too far from home.
More recently, here in Dallas, Toyota and a few other California-based companies and other out-of-state companies announced they were relocating their headquarters -- and many of their employees -- here.
Real estate prices skyrocketed. The numbers of houses being built skyrocketed. Property taxes skyrocketed.
Builders and sellers asked higher and higher prices, and got them. They're still getting them. In some areas, if you factor in the sometimes tripled (as compared to California) property taxes, house prices are now on par with some areas of SoCal.
(I could actually buy a house for less money in the city I come from in SoCal.)
The market here in Dallas is -- I think -- starting to slow and level out now.
Still, it's sad. Historically, real estate here has always been quite reasonable. But now Ma and Pa Dallas have to sell their house because they can no longer afford the property tax.
My biggest gripe about the whole thing? This isn't California! It really sucks to have to pay California prices without any of the benefits of actually being there.
Being able to afford a really nice house in Dallas was once the trade-off for dealing with heat, humidity, bugs, tornadoes, hail, wind, ice storms, no beach, no mountains, no scenery, and no rolled tacos.
At least the people are nice enough. As long as we don't talk politics!
Hey, here's a news flash for you! All of us awful Californians didn't make a bundle off our crappy little tract houses! We're not all rich! We became Californians because that is where our parents found jobs! Can you comprehend that?
You hear this gripe a lot, and I think it's misplaced.
People leaving CA for other states don't set the asking prices of the homes. The homeowners in those "other" states do. Sounds more like greed to me. I'm sure many of those sellers are hoping to sell their homes to a CA person.
It doesn't make sense, unless you trying to sell an over-priced home and need a good excuse for why non-one has bought it.
3 relatives of mine moved to California and skyrocketed the prices there and Californians were dismayed they have to pay higher taxes.
Maybe you are kidding? CA property tax increases are very limited on an existing residence due to Prop 13. This is one factor which causes a lot of people to stay in their present home, with only minor increases over the years, instead of moving up to a more expensive one with much higher property taxes.
What's more, once CA home owners reach about age 55, they have the opportunity for a one time property tax rate transfer to a new home of equal or less assessed value purchased within the same county.
3 relatives of mine moved to California and skyrocketed the prices there and Californians were dismayed they have to pay higher taxes.
The only one paying skyrocket property taxes would be your relatives! Their neighbors, who may be living in an identical home, who purchased their home years before and for a lower price would be paying lower taxes.
The only one paying skyrocket property taxes would be your relatives! Their neighbors, who may be living in an identical home, who purchased their home years before and for a lower price would be paying lower taxes.
... why do people think that us California people are going to increase your property taxes?
Indeed, my struggle to understand is from the reverse direction. Hypothetically, a bunch of well-heeled ignorant rapacious newcomers with bulging wallets swoop in, buy local properties, and thereby raise the prevailing market-rates for local real estate. How do I, as a local owner, suffer from this? The value of my house rises. My net worth rises. And I’m the victim here? How?
OK, property taxes might rise, if assessed value rises. But please consider. These newcomers are probably older. They likely don’t have school-aged children. But as house-values rise, the tax receipts also rise. Tax-rates may not fall (do they ever?), but at least we’d not need those incessant levies aiming to wring more and more tax-dollars from declining real-estate values.
And as a bonus, perhaps I’d actually get neighbors who have been outside of the local county, and have something of a more worldly perspective.
Quote:
Originally Posted by Piney Creek
Since you asked how something like this happens, I thought I'd give a detailed look at how I saw it happening in Loudoun County, VA (about an hour west of DC). ...
... I loved living in Loudoun for decades. I once thought I would retire here, but instead we are selling. We bought a place in a much smaller southern VA town. And the odds are high someone from California may buy my house.
Perspectives differ. I spent some of my formative years in the then less-desirable parts of neighboring Fairfax County. I watched farms and forests get bulldozed to make way for subdivisions. This skewed my perception, as I'd come to surmise that it's perfectly normal to buy a house in the then-hinterlands, sit back for a decade or two, and watch the development come in. Eventually we get Trader Joe's and Whole Foods. Thus I bought in a rural locale in Ohio, beyond the suburbs, thinking that, well, between the defense-boom and marching onslaught of subdivisions overtaking farms, my little patch of forest would eventually be worth something. Instead, precisely the reverse happened. Growth stalled, then reversed. Factories and distribution-centers closed down. The more prosperous people moved away.
Would some of those Californians please deign to move into our area? I have a house to sell - cheap!
It's been the law of the land for 40 years and has withstood all challenges.
Simple, a few paragraphs replaced volumes of tax code.
In a nutshell, property is assessed at market value at the time of transfer, annual inflation increase is capped at 2% and voter approval required for special assessments...
Many old timers in SC say we Yankees that retired here are driving housing prices higher.
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