Due to the lack of land in favorable locations, California ended up in the current situation. In Los Angeles and San Francisco, prices for undeveloped land are too high, and delays often happen according to Kenny Slaught. This encouraged for renovations instead, as Proposition 13 made it hard to move to another area. Although home taxes are forbidden to grow past 2% according to 1975   assessments, there is a exception when a sale is executed and a is home reassessed according to its current value. In the end, annual totals are framed by unstable variance. This happens due to the demand changing based on season, as the majority relocate in June and at the end of the year. Other influencing factors are interest rates, negative equity status, the state of homebuyer jobs, how confident the consumers are but also significant investments outside US.

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