Not too long ago, the Tax Cuts and Jobs Act made it through Congress and the Senate, which means it’s a single signature away from becoming part of the law. How do we as Americans view the prospects of this legislation?
There is a lot of nervousness and anxiety surrounding the passing of this bill. Realtor.com conducted an online survey asking 2,324 of their random respondents across the U.S. Americans seem to be anxious about the tax bill’s potential effects on homeownership, which could lead to a change in their plans to buy or sell a home.
Out of the respondents, 36% said they were concerned about being a homeowner, while another 17.2% expressed they were very concerned. Only 15% said they were positive about homeownership, and only another 7.2% said they were very positive.
Under the new bill, there could be a significant impact on the housing market and overall economy. Republican lawmakers say the $1.5 trillion tax-code rewrite will put more money into Americans’ pockets and stimulate the economy. The Tax Policy Center says that three-quarters of tax payers will get bigger paychecks next year with less taxes taken out.
So, some wealthier house hunters will see an increase in after-tax income. This could mean a more competitive house market for them as more people are seeing an increase in their income, which could mean an increase in house prices to meet the demand. Real estate professionals are concerned the tax plan will wind up discouraging buyers because it will lower the cap on mortgages that are eligible for interest deduction. It lowers it from $1 million to $750,000. This could especially effect buyers in New York and California.
Luckily, it hasn’t changed the mind of buyers and sellers too awfully. 29.2% of buyers said they would fast track their plans to buy, while 22.9% said they planned to move at the same pace. 18.5% said they would take more time.
For those planning to put their house on the market, a whole 57.1% plan to sell their house without any changes, while 13.9% expect to sell quicker. Only 10% said their house would sell slower and 7.6% would postpone their selling.