{"id":208,"date":"2018-06-08T01:30:53","date_gmt":"2018-06-08T01:30:53","guid":{"rendered":"http:\/\/renwre.info\/2018\/06\/08\/did-tax-reform-kill-the-luxury-market-not-so-far\/"},"modified":"2018-06-08T01:30:53","modified_gmt":"2018-06-08T01:30:53","slug":"did-tax-reform-kill-the-luxury-market-not-so-far","status":"publish","type":"post","link":"http:\/\/renwre.info\/?p=208","title":{"rendered":"Did Tax Reform Kill the Luxury Market? NOT SO FAR!"},"content":{"rendered":"
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\"Did<\/p>\n

The new tax code limits the deduction of state and local property taxes, as well as income or sales taxes, to a total of $10,000. When the tax reform legislation was put into law at the beginning of the year, some experts felt that it could have a negative impact on the luxury housing market.<\/span><\/p>\n

Capital Economics<\/em><\/strong>:<\/strong><\/h4>\n
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\u201cThe impact on expensive homes could be detrimental, with a limit on the MID raising taxes for those that itemize.\u201d<\/em><\/p>\n<\/blockquote>\n

Mark Zandi of Moody\u2019s Analytics<\/em>:<\/strong><\/h4>\n
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\u201cThe impact on house prices is much greater for higher-priced homes, especially in parts of the country where incomes are higher and there are thus a disproportionate number of itemizers, and where homeowners have big mortgages and property tax bills.\u201d<\/em><\/p>\n<\/blockquote>\n

The National Association of Realtors<\/em> (NAR)<\/strong> predicted price declines in \u201chigh cost, higher tax areas\u201d because of the tax changes. They forecasted a depreciation of 6.2% in New Jersey and 4.8% in Washington D.C. and New York.<\/p>\n

What has actually happened?<\/strong><\/p>\n

Here are a few metrics to consider before we write-off the luxury market:<\/p>\n

1. According to NAR\u2019s latest Existing Home Sales Report<\/a><\/em>,<\/em> here is the percent change in sales from last year:<\/p>\n