Homes in California is not being sold. They are being inherited

  📍 Homes in California is not being sold. They are being inherited. That's 18% of the property transfers, which is by the way, double the national average. We are, uh, quickly becoming an inheritance base market in very expensive counties. Um, one in four, 25% are becoming an inheritance, uh, market. Why does this matter to you?

Because it's killing inventory. I keep talking about how we need to address the inventory side of the equation. These properties never hit the market. They stay in the family and they become rentals or second home. Um, it's replacing a lot of the traditional home buying. So a lot of kids, instead of buying, they're just waiting for their parents or their grandparents to pass away and they just move in.

Uh, people are holding on instead of selling because of prop 13 and Prop 19. Um. For example, LA County has a huge problem. 63% of all inherited homes are used as rentals or second homes. Those properties never hit the market. So people were talking about the silver tsunami that was be, that was, uh, gonna come from, uh, uh, uh, this generation, um, boomers say we're gonna sell and flood the market.

It's not a flood, it's a trickle. Those homes are moving, but they're not hitting Zillow, they're staying within the family. So, big picture. Less inventory means higher prices and bigger wealth gap. What are your thoughts?