The effect of Prop 13 is much, much more than this. It gives homeowners an incentive to hold on to property as long as possible.

The article mentioned "this uninhabitable home possibly infested by rodents and held up by a couple of poles" selling for $1.8M, but neither that or the linked one mentioned the owner was paying tax on only $70k of assessed value.

There are often comparisons made to Texas-- in this case, someone owning a $1.8M house would be taxed around $54,000 a year in Texas, versus the $700 he was paying in property taxes in California.