In order to answer pressing questions about the COVID-19 crisis and specific real estate issues in California, the Greater Downey Association of Realtors invited Los Angeles County Assessor Jeffrey Prang to speak at a Zoom Webinar on May 27th 2020.
Beginning with the COVID-19 crisis, it is stressed that the long term effects on the market so far are unclear. This is due to the pandemic only recently occurring and there being a lack of meaningful data and statistics regarding the changes it has caused.
However, Prang made it clear that in the short term we are entering an economic depression that will impact the government’s ability to provide services to American citizens. He provided data that has surfaced regarding the Housing Market in California. Home sale totals in Los Angeles dropped by 26.6% in April compared to March. The short term picture for the economy is bleak, with many curtailments and layoffs occurring and much more tele-working than prior to the pandemic. He detailed how in the LA County Assessors Office about 95% of his employees are currently tele-working.
The Housing market has seen a step backward in home sales, but home prices have risen by 3.8% in the same period, showing that LA County’s value remains high. In particular, Downey was ranked among the 20 most valuable cities in LA County and saw a 6.2% increase in property values, almost double what the county as a whole experienced. Prang attributed this growth in value and slowdown in sales to the multitude of new constructions in LA County and the CPI adjustment. It can be inferred based on the April numbers that the pandemic’s social distancing and stay-at-home orders are having an impact as well.
In addition to this information on the pandemic, Prang weighed in on the very important split-role measure on the California ballot for 2020. The amendment to the California Constitution would require a yearly assessment of all commercial and residential properties. This change would result in about a 7-12 billion dollar increase in the property taxes collected. These taxes would go towards critical public services such as the school system and helping the needy. In its current state, split role may or may not pass but it has a strong message of helping the children and the school system of California.
Jeffrey Prang will return to speak with the Greater Downey Association of Realtors in July to provide more information.
CIMA Law Group Blog 