Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,308
Another question. Anyone have any idea how quickly (if) home prices may decrease as a result of the fact so many fewer people will be able to itemize making the deduction for mortgage interest worthless for most people. (The limitation on SALT may also play a part).
That is the bill does retain mortgage interest deductions (up to mortages of I think $750k). We plan to sell our existing house and buy a house in 2018. My understanding is that in general home prices have been propped up (so to speak) by the existence of the mortgage interest (and to some extent property tax) deductions.
The deductions still exist. But, many people won't take them any more due to the increased standard deduction. Given that -- how quickly do you think house values will go down (if at all) because of the perception they are less valuable if you can't deduct interest?
Specifically I am wondering if the reduction in home sale prices will accelerate over the course of the year -- in which case it makes sense to sell ASAP.
On the other hand, it is possible that there might be an immediate decline as people panic but that the prices then rebound a bit as people realize that deductible of mortgage interest isn't that big a deal. If that is the case, then maybe it makes sense to wait a few months before listing.
That is the bill does retain mortgage interest deductions (up to mortages of I think $750k). We plan to sell our existing house and buy a house in 2018. My understanding is that in general home prices have been propped up (so to speak) by the existence of the mortgage interest (and to some extent property tax) deductions.
The deductions still exist. But, many people won't take them any more due to the increased standard deduction. Given that -- how quickly do you think house values will go down (if at all) because of the perception they are less valuable if you can't deduct interest?
Specifically I am wondering if the reduction in home sale prices will accelerate over the course of the year -- in which case it makes sense to sell ASAP.
On the other hand, it is possible that there might be an immediate decline as people panic but that the prices then rebound a bit as people realize that deductible of mortgage interest isn't that big a deal. If that is the case, then maybe it makes sense to wait a few months before listing.