The Housing Industry Prepares For Tax Plan Impacts
The new tax changes could have a significant impact on the housing market.
As the new Republican tax bill inches closer to passing, housing economists, realtors, mortgage bankers, home builders, and homebuyers are all trying to predict how the industry will be affected.
Currently, taxes on a new home are much lower in the first 12 to 24 months than on a resale home with similar value -- but that could all change in the near future.
"This is mostly an issue on the two coasts, where home prices can routinely run $750,000 to $1 million or more," said Guy Cecala, publisher of Inside Mortgage Finance, who predicts that the new lower limit of $750,000 mortgage interested deductions would impact high priced markets like New York City and San Francisco the most. "In most parts of the ...