Posted On: August 30, 2019
Three months ago we posted a blog, Make Real Estate Great Again, where we discussed President Trump’s influence on Real Estate:
“During the hour long address, our president put the environmental and other government regulations that impede building on blast. He also spoke highly of his administration’s opportunity zones which encourages investment in struggling communities, and he preached his plans to repair the nation’s housing finance system.”
Home sales have seemed untouched (so far) by the mortgage deduction loss. The Internal Revenue Service (IRS), found that in 2018, one out of every five taxpayers claimed deductions; however, this year, that number dropped to one in every ten. This number was also much lower for families who earn less than $100,000 a year.
However, home sales are continuing at a solid pace. This has critics of the mortgage-interest deduction saying it should be further improved because it changes the housing market; encouraging homeowners to buy the largest home possible even if they cannot afford the costs.
In the debate in 2017 over the tax law, the industry warned that the legislation could cause house prices to fall some 10% or more (depending on the area in the country). Price growth has relaxed in many markets, but unfortunately not as much as the estimates suggested. Also, no pattern proves that the loss of deduction was a primary factor.
Here at SETCO, we always do our best to keep you up to date on real estate news. We also offer the safest closing process available with the help of Qualia. Buyers, sellers, lenders, and realtors can all count on Setco to be there through the entire closing process, making sure everything goes as smoothly as possible.
Ready to get started? Click below to contact your local Setco closing agent!