RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Housing and Tax Reform: Where Could the Impact Land?

Home House Canary
By Suzanne De Vita
January 19, 2018
Reading Time: 3 mins read
Housing and Tax Reform: Where Could the Impact Land?

Analysing mortgage data, pen, calculator and graphs, light fading background

Homebuyers and homeowners are anticipating fallout from the Tax Cuts and Jobs Act, which has changed homeownership incentives, including the deductions for mortgage interest and state and local taxes.

How deep the effect is hinges on location, according to new research.

With the bill’s new provisions, the mortgage interest deduction (MID) is applicable to loans of up to $750,000 (down from $1 million), and state and local tax (SALT) deductions are limited to $10,000. An analysis conducted recently by HouseCanary, provider of predictive real estate analytics and insights, determined that 82 percent of lost MIDs under the new laws are concentrated in 10 metropolitan statistical areas (MSAs), including four California MSAs and four East Coast MSAs.

HC_1

All told, 6.4 percent of loans between $750,000 and $1 million could be affected by the changed MID, or $287 million in deductions lost total, the research reveals.

In the case of the deduction of state and local taxes, including property taxes, 66 of the 3,134 counties in the U.S. could be impacted, the research shows. Bearing the brunt could be Boston, Mass., New Jersey and New York, where citizens could depart for lower property taxes in other states.

HC_2

“The recent tax bill clearly addresses some key deductions for many current and potential homeowners, yet the overall net effect on the nation’s housing picture is harder to discern,” says Alex Villacorta, executive vice president of Analytics at HouseCanary. “On the surface, the reduction in the caps for the mortgage interest deduction (MID) seem to squarely target the higher end of the nation’s housing inventory, specifically those homes valued between $750,000 and $1 million. Throw in the caps to the state and local taxes deductions, and even more force is added to the headwinds for homeownership.

“Yet, for most homebuying consumers, there may actually be real tax savings that could potentially assist acquisition of the necessary down payment for homeownership, something that has been elusive for many new entrants into the market,” Villacorta says. “What we do know at this point, however, is that this new tax bill will add another layer of uncertainty to a market that has been searching for some semblance of normal since the euphoric run-up and near economic collapse of the housing market over the last decade. The new normal of today’s market dictates that all market participants—buyers, sellers, lenders, and investors—will have to be vigilant at a granular level to better understand when or if this tax bill, or any other factor, affects their property’s market value.”

Thirty-three percent of Americans approve of the Tax Cuts and Jobs Act; 55 percent disapprove, according to a Gallup poll in January. More than 35 percent of respondents to a December realtor.com® survey were “concerned” about homeownership in light of the reform.

For more information, please visit www.housecanary.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: Homeownership IncentivesHouseCanaryMortgage Interest Deductionreal estate newsSALTTax Cuts and Jobs ActTax Reform
ShareTweetShare

Suzanne De Vita

Related Posts

The July Issue of Real Estate Magazine Is Now Live
Agents

The July Issue of Real Estate Magazine Is Now Live

July 1, 2022
First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing
Agents

First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing

July 1, 2022
Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround
Agents

Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround

July 1, 2022
Florida, South Top Inflated Rental Markets
Agents

Florida, South Top Inflated Rental Markets

July 1, 2022
For-Sale Home Supply Grows Faster Than Ever as New Seller Activity Rebounds
Agents

For-Sale Home Supply Grows Faster Than Ever as New Seller Activity Rebounds

July 1, 2022
Meet the Newsmakers: Honoring the Educators
Agents

Meet the Newsmakers: Honoring the Educators

July 1, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Break a Leg: How Acting Techniques Can Enhance Your Pitch

Authenticity, emotion and empathy are all a big part of a successful client presentation, and actors have the answers. Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • The July Issue of Real Estate Magazine Is Now Live
  • First Guaranty Mortgage Corp. Tacks on Massive Layoffs With Bankruptcy Filing
  • Pandemic-Fueled, ‘Astonishing’ Cost-Burden Turnaround

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.