The real estate community continues to rally in the wake of House Republicans passing the H.R.1 - Tax Cuts and Jobs Act. Many feel that the combination of the lowering of the mortgage interest deduction cap, the scaling back of property tax deductions, and the increase in the restrictions for avoiding being taxed on housing profits will have many Americans reconsidering whether or not housing is their best investment. In places where property taxes are high such as New York and California, Republicans voted against the bill.
“By threatening the value of the largest asset held by most Americans, these changes will hurt the middle class by lowering household wealth,” said Granger McDonald, Chairman of the National Association of Home Builders. The concerns come at a time when building confidence is on the rise. The National Association of Home Builders/Wells Fargo Housing Market Index for November reached its highest levels since March and its second-highest level since July 2005,
“It’s disappointing to see this legislation move forward, but the real work to shape this debate is just getting started. Realtors® will now look to the Senate as we make our case that the tax reform proposals pending before Congress overwhelmingly remove the tax incentive to purchase and own a home in America,” said National Association of Realtors® President Elizabeth Mendenhall. On Friday, the Senate Finance Committee approved its tax plan which preserves the existing mortgage interest deduction levels.