Increased Turnover of Houses Ahead
The lead editorial in the July 19th issue Forbes, Pay More Taxes Now by William Baldwin, points out that for the past 50 years, accountants have been advising their clients to accelerate deductions and defer income because of declining tax rates. Now that the tax momentum is reversing, accountants will correctly be advising clients to accelerate income and defer deductions.
Therefore, as a result of this phenomenon, I expect sales volume to increase in Los Altos, Los Altos Hills, Palo Alto and surrounding communities going forward. I believe sales prices will not necessarily be affected by an increase in volume, of course, because value is impacted most by the ratio of supply to demand.