New Proposition 90 in El Dorado County Means Property Tax Benefits for Homebuyers

SACRAMENTO, Calif., July 22 /PRNewswire/ -- The recent adoption of Proposition 90 by El Dorado County now enables qualified people who have sold their homes in other California counties to transfer their property tax base to a home in El Dorado County, potentially saving them thousands of dollars in property taxes.  El Dorado County is one of only eight counties of the 58 counties in California to adopt this proposition, and it is the only rural county in California to do so.

Proposition 90 provides a new opportunity for people from other counties who buy a home in El Dorado County to transfer their "lower" property tax base from a "sold" principal residence to a "replacement principal residence.  For sellers 55 and over, Proposition 90 means they no longer are forced to stay in their current residence due to concerns that they won't be able to afford the higher property taxes. This has particular implications for the luxury home market.

The advantages of Proposition 90 combined with the reduction of luxury home prices in many high-end communities continue to strengthen the luxury home market. In the long run, the proposition is expected to stimulate the real estate market in El Dorado County and should particularly impact El Dorado County's largest and most prestigious master-planned community of Serrano.

At the 3,500-acre master planned community of Serrano in upscale El Dorado Hills, custom lot prices were recently reduced to year 2000 levels. Custom lots in wooded, hilltop and golf course settings with views of Folsom Lake, the Sierras or city lights now are priced from $153,500, making them comparable to year 2000 pricing.  As a result, sales have increased in 2010 compared to the previous two years.

In fact, in many areas of the country, the luxury home market is already showing some signs of improvement.  A recent trend reported in the Wall Street Journal stated that nationwide, sales of homes selling for $2 million to $5 million in first quarter 2010 were up 32 percent from a year ago.  Furthermore, a study for the Wall Street Journal by MDA DataQuick, a real estate data provider, found that in some areas of the country, including parts of the Bay Area, sales of homes in this price range were actually on par with levels of 2005 – the peak year for existing-home sales volume nationwide.

What this means to Northern California residents is that the market to buy in a luxury or custom real estate market has reached competitive levels.  In San Francisco, 49 homes sold for $2 million or more in the first quarter of 2010 compared to 47 in 2005, according to the Data Quick study. Price discounts and more value for the dollar are primarily responsible for this sales spike.

"In addition to Serrano's custom lot prices being reduced, the recent adoption of Proposition 90 by El Dorado County now provides additional incentives and opportunities for people from outside the county to buy a home in El Dorado County, said Kirk Bone, director of government affairs for Parker Development Company, developer of Serrano.  "Since February 2010 when the ordinance became effective, it hasn't been taken advantage of yet in the county. Our goal is to get the word out to prospective buyers who may benefit from this."

About Serrano

Serrano is a prestigious 3,500-acre community in the foothills above Sacramento with a private country club, 18-hole golf course, highly ranked schools, nature trails and 1,000 acres of open space.  Serrano was previously named "National Community of the Year" and features both custom homesites and a variety of other housing choices. For custom lot buyers, Serrano offers interest only lot loans with no points and no fees and discounts of up to two percent for all cash purchases.    

SOURCE Serrano