Many real estate experts are pushing back on the notion that the recently-passed tax law will cripple high-end housing markets in more expensive, coastal metros.
Realtor.com senior economist Joseph Kirchner says that long-term, the mortgage interest rate deduction (MID) limitation will affect only 1.3 percent of homeowners in the U.S., mostly concentrated in large, high-cost metros. “Now the uncertainty is gone and the tax bill provisions directly affecting these homes if far less onerous than expected,” Kirchner told Curbed, “Over the next few months, we expect these buyers to come back into the market.”
Jaime Sneddon, an Associate Broker for Sotheby’s International Realty in Connecticut, believes tax reform will help certain markets play the pricing game. He believes that he’ll be able to lure buyers considering New York and New Jersey to consider Fairfield County, Connecticut, since property taxes are nearly half as much in that state. Due to tax reform, he’s launching an aggressive campaign to target potential buyers leaving New York City.
