Real Estate

Real Estate Matters

Where have all the houses gone?

by Wendy McPherson

This story contains 784 words.

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Wendy McPherson manages about 145 agents for Coldwell Banker in two Menlo Park offices, plus Woodside and Portola Valley. She can be reached at WMcPherson@cbnorcal.com.

Comments

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Posted by older homeowner
a resident of Old Palo Alto
on Feb 19, 2014 at 10:48 am

This change in the capital gains tax is stupid and self-defeating as a revenue generator. Because of Prop 13, we older homeowners are paying a fraction in property taxes as our newer neighbors. Our home is now worth over 5X what we paid for it a quarter century ago. If we sold it, the new owners would be paying 5X the property tax of what we pay - FOREVER! Having raised our kids, we would like a smaller home, but the capital gains keeps us from moving. Also, if we moved, our new, smaller house would be more energy efficient.


Like this comment
Posted by Homeowner
a resident of Barron Park
on Feb 19, 2014 at 2:53 pm

Part of the problem is speculative buyers from overseas. What middle class family (especially if, God forbid, they need a mortgage) can compete with these all-cash buyers for a place to live?


Like this comment
Posted by Robert
a resident of another community
on Feb 19, 2014 at 3:56 pm

@Homeowner

Middle class? Palo Alto shut the door to them a while ago, though at the very least there is hope that affordability might be discussed, now that the affluent are feeling the effects of being priced out.


Like this comment
Posted by palo alto resident
a resident of Embarcadero Oaks/Leland
on Feb 19, 2014 at 4:25 pm

There is also the issue of property taxes, many of my friends would love to sell and move for a variety of reasons, but their current property taxes are based on a 10-20 year old property value and it doesn't make financial sense for them to move.


Like this comment
Posted by Homeowner
a resident of Barron Park
on Feb 19, 2014 at 4:48 pm

I think Wendy makes a good point about the Taxpayer's Relief Act. Paying a $400K penalty for after selling does hold sales back.


Like this comment
Posted by PA007
a resident of Community Center
on Feb 19, 2014 at 5:20 pm

Wendy, People all have hope. but these days they have more.. Houses will be back in the market when hope is fading. It could take years.


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