Now that we understand the main changes to the tax law as related to the housing market, we have to ask ourselves – what will the impact be on house sales? Obviously, it is impossible to predict the exact outcomes, but certain assumptions can be made. For example, current homeowners in million-dollar houses who had been toying with the idea of selling, may now decide to stay put because their tax benefits will be higher, thus decreasing the number of houses available in that price range. Or we might see an influx of people to areas with lower state and local tax burdens, as the total deduction that can be taken against state and local taxes has
For a clear and insightful discussion on how the new tax laws might impact housing costs and the housing market, take a minute to read this article in Forbes Magazine – How The New Tax Law Will Impact Your Housing Costs.