The Impact of Tax Reform…Part 2

nothingFTadtext

To the question implied in the title up on top…the answer is this image! Nothing. Nada. Zip.

A month ago it’s all anybody in my office was talking about….what will the tax reform do to our business? How much of a bite will it take out of this market since it’s so clearly unfair to us in Northern California. The idea of a 10% reduction in values around here was bantered about. Everybody was going to freak out and retreat because they couldn’t write off all of their state and local taxes. Heck, I saw a post on Facebook from the California Association of Realtors predicting a 4.1% drop in home values as a result of the new laws.

OK, it’s only January 26 but I’m telling you the answer to what impact the tax law has is written above….NOTHING. You ask why I’m so sure? Check out this list:

3 Knot Lane Redwood Shores. Listed for $998,000……12 offers, sold for $1,210,000

906 Virgo Foster City. Listed for $1,278,000…7 offers, sold for $1,460,000

1134 Continentals Belmont. Listed for $1,099,000…10 offers, sold for $1,360,000

3649 Oso, San Mateo. Listed for $1,088,000…15 offers, sold for $1,450,000

5 Riviera, Redwood Shores. Listed for $1,599,000…6 offers sold for $1,850,000

These are all pending sales by the way. I participated in a couple of these myself…it’s, as usual, crazy out there! There’s at least 20 more stories just like this that I didn’t list! The fact is, the market couldn’t care less about the dreaded tax reform. When we bought ourselves we did so to stop providing for our landlords retirement and start providing for our own. The tax part was a fringe benefit. I think the market seems to agree. Last week I was talking with a lady about this topic…she’s been picky and prone to fence sitting in relation to any potential blip on the economic radar that comes along and now it’s a further opportunity to stay on the fence to “wait and see”. She thinks it’s still too early to judge the impact…we’ll know more in a few months. Right…like these droves of buyers will suddenly wake up in May and say “Hey, I can’t write off as much mortgage interest! I quit!” At which time she’ll swoop in with a 20% underbid and steal a perfect house.

OK, if you say so. But I doubt it.

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