What does the new Tax Law mean for Real Estate?

It’s not often that a new year brings major changes to how we’re taxed. Now that the President has signed the tax bill into law, it’s predicted to have a significant impact on the economy and therefore the real estate market in Idaho.

One school of thought is that more money in Americans’ pockets means that they may accelerate their plans to buy a home. More buyers with more disposable income paired with low housing inventory might drive home prices even higher.

On the other hand, some real estate professionals think that the new tax law could dissuade buyers because the cap on mortgage interest deduction has been lowered from $1 million to $750,000. Of course this only affects higher end homes so most will be unaffected (especially in Idaho).

Only time will tell what actually happens to the real estate market, but most people are expecting another very strong year!

If you’re looking to buy or sell a home this year, please feel free to contact me for help!

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