Palm Springs Real Estate Podcast with Will Cook - 4 Ways the New Tax Bill Will Impact the Real Estate Market

4 Ways the New Tax Bill Will Impact the Real Estate Market

02/05/18 • -1 min

Palm Springs Real Estate Podcast with Will Cook

The new tax reform will impact the real estate market in four key ways. These changes indicate that now might be the time to start the process if you’re thinking about selling in 2018.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

I’ve gotten a lot of questions recently about how The Tax Cuts and Jobs Act will affect the real estate world. There are four key tax changes that will impact the housing market:

1. Deductions for property taxes. Prior to the new tax bill, if you itemized deductions on your federal return, you were able to deduct the entire property tax bill along with any state income taxes. Going forward, this total amount will be capped at $10,000.

2. Deductions for mortgage interest. The final tax bill reduces the limit on deductible mortgage debt to $750,000 for or new loans that were taken after December 14, 2017. Other loans of up to $1 million prior to that time are grandfathered in.

Selling a home? Click here for a FREE Home Price Evaluation

I’ve gotten a lot of questions recently about how The Tax Cuts and Jobs Act will affect the real estate world. There are four key tax changes that will impact the housing market:

Previous Episode

7 Tips to Buy a Home in 2018

If you are preparing to buy a home in the new year, there are seven ways you can prepare.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Today, I’d like to share seven tips you’ll need to keep in mind to buy a home in 2018.

1. Check your credit score. Your credit score is basically a numerical representation of your credit report. FICO credit scores range from 300 and 850. Having good credit is like gold when it comes to getting a mortgage. Those with credit higher than 740 will get the most competitive rates.

2. Do not open new credit cards.

Next Episode

A Market Update for the Palm Springs Area

What are the latest trends of the Palm Springs area market? I’ll fill you in on the numbers today.

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation

Are you up-to-date about what’s going on in our local real estate market?

As of February 1, the months-of-supply ratio was 4.9, which is a record-low ratio and is responsible for the continued trend of being in a seller’s market. The chart shown at 0:44 in the video shows that March is usually the high in this ratio, and we expect it not to exceed five months of supply for the entire year.

This is a considerable improvement over the last three years, when it often went above six months for extended periods of time. This indicates that inventory should remain low and tight in 2018, making it a seller’s market in general, and putting upward pressure on pricing.

The days on market remains low as well, at just 66 days. The inventory improvement compared to a year ago is found in all price brackets, but especially between $400,000 and $800,000. As we expect, the months-of-supply ratio increases at higher prices, but it doesn’t really start until prices get over $700,000, while inventory ratios for prices above $900,000 are better than a year ago—that segment of the market is still a buyer’s market.