1. Housing inventory remains extremely low
2. Buyers are increasingly optimistic
3. The new tax reform bill will impact the market
The federal government recently passed The Tax Cuts and Jobs Act, majorly overhauling the tax code.
While it’s unclear how this will affect the real estate market as a whole, there are several changes that do not favor home sellers. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership. However, no changes were made in the rules surrounding capital gains for home sales, which is a major victory for home sellers. As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth in home prices in 2018, with an appreciation rate of 1% to 3%. When you put all three of these trends together, two big conclusions emerge:
Now is a very favorable moment for home sellers thanks to the shortage in the market, the many eager buyers, and the high and rising prices. Higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes. If you are looking to take advantage of the present moment to sell your home, you can get started by finding out what it might be worth in the current market. To do so, check out this home value calculator, which takes into account recent Northeast Florida sales:Enter your street address here to find out what your home is worth And if you want a more personalized and accurate estimate, give me a call at 904-533-6995. I'm constantly talking to home buyers in the Northeast Florida area, and I can give you a precise idea of how a sale of your home would unfold in the current market.