We all know by now that the changes to federal tax deductions enacted at the end of 2017, will now take effect this year.
The Tax Cuts & Jobs Act lowered the cap on the mortgage interest deductions from the previous amount of $1 million to $750,000.
It also placed a $10,000 cap on state and local tax deductions.
Although these caps increase in the standard deduction means that fewer of us will opt to itemize.
It also means it will decrease the tax benefits for home owners of more costly homes.
It’s too early to have any real data to review, but we predict that these new tax laws will have a direct impact on slowing sales of “upper-end” homes.
But overall, we still expect to see homes appreciate modestly at around 2 or 3 percent in 2019.
In our first podcast of 2019, which you can listen to on your favorite podcatcher or here.
We discussed the tax law change as well as other factors that we know will affect and are affecting the local real estate market.
Some of those include interest rates, housing inventory increase, and more.
We have some great ideas and suggestions for sellers of these homes that we believe will help to overcome buyer reluctancy.
So, if you have an upper echelon home that you are thinking of selling, or if it’s been sitting on the market with no real activity, give us a call!
We invite you to share your thoughts below in the comments section about the new tax law.