Today’s must-read: John Oldham on Proposition P
I know I’ve said this before, but if you’re at all interested in local real estate issues and you’re not already reading it, check out John Oldham’s fabulous 94501 Real Estate blog. On Wednesday he ran the numbers on Proposition P, the recently passed local measure that ore than doubled the city’s property transfer tax. Oldham’s conclusion?
In the short-term the tax may be one more factor for people not to buy, but given the stress on the City’s General Fund the tax may have been a necessary step. Only time will tell what the overall impact will be, but we do know that sale price are down about 15% and if the year continues to pace the same way the city will see a decline of about $300,000 in revenue year-over-year even with the increase.