East Bay Market Update - June 2023

The Benefits of Proposition 19

Did you know that if you are 55+years old you can transfer your property tax basis to a home anywhere in the state of California? Have you been dreaming about San Diego sunshine or golf courses in Palm Springs? If so, this newsletter may be relevant for you.

Individuals who are 55+ years old, severely disabled, or victims of wildfires and natural disasters may transfer the taxable value of their property to a replacement property anywhere in the state, up to three times. The purchase of the new property must be made within two years of the sale of the original property. And, you can buy a new home that is worth more than your old home. In this case, there will be an upward adjustment in the tax basis — however, taxes will still be lower than they would have been without the Prop. 19 benefit. What’s more, Prop. 19, protects the right of parents and grandparents to pass on their family home to their children and grandchildren for continued use as their primary residence by limiting property tax increases on these family homes.

For more information on Prop. 19 go to: https://leginfo.legislature.ca.gov

Our local market saw a notable decrease in the number of sold properties, year over year. However, despite this decrease in sales, our average prices remained relatively stable. The average home price fell by 2.2% in Oakland, 5.5% in Piedmont, and 8% in Berkeley.

Looking at the recent Piedmont sales on the back page of this newsletter, we found that homes appear to be staying on the market longer. Properties sold in May were on the market for an average of 18 days. However, currently pending properties were on the market for an average of 32 days. Active properties on the market have already been on the market more than 29 days. This may point to a slowing market.