Brokers and analysts say that the House and Senate GOP tax plans to reduce or eliminate the state and local tax deduction are threatening high-end markets like New York City, where homebuyers are thinking twice before purchasing.
Experts say they might have to reduce revenue forecasts from the New York City's transfer taxes on residential property sales in anticipation of fewer sales and lower prices. Brokers expect a new flood of homebuyers from New York and California in Florida, where there is no income tax, according to Realtor.com.
Most worrying to industry professionals were proposed changes that raise the direct cost of home ownership and likely reduce the value of a home ... The budget of added tax liability year after year, plus future property tax increases, could limit how much buyers are willing to pay for properties today, brokers said.
