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Tax Bill Raises Concerns About Homeownership; Most Will Change Buying Or Selling PlansSANTA CLARA, Calif., Dec. 21, 2017 /PRNewswire/ -- A new nationwide consumer survey from realtor.com® shows that the Tax Cuts and Jobs Act passed by Congress on Dec. 20 is raising anxiety about owning a home, with a majority of respondents reporting that the tax bill makes them either "concerned" (36.2 percent) or "very concerned" (17.2 percent) about being a homeowner. In contrast, less than a quarter of respondents said that the bill makes them feel "positive" (15.0 percent) or "very positive" (7.2 percent) about homeownership. Only 22.9 percent said that the tax bill would not change their plans to purchase, while 57.1 percent said that the bill would not change their plans to sell. The Tax Cuts and Jobs Act will provide many people with higher after-tax incomes, which is expected to put upward pressure on home prices and mortgage rates. It caps the mortgage interest rate deduction at $750,000 and increases the standard deduction, which will eliminate the tax benefits of homeownership for many people and could decrease sales and home prices in expensive areas. "The bill will have a significant impact on the housing market and overall economy, so it makes sense that people are wondering what it means to them," said realtor.com® Senior Economist Joseph Kirchner, Ph.D. "Some house hunters – particularly wealthy buyers – will see an increase in after-tax income making an already tough housing market even more competitive. This increased demand could drive prices up even higher than they are already. And changes in the deductibility of mortgage interest and state and loca taxes could cause challenges for many homeowners." The findings are part of an online survey of 2,324 randomly selected online respondents across the U.S. conducted on behalf of realtor.com® between Dec. 18 and 19. Survey Highlights
Expected impact of implementation
"What likely impact will the tax bill have on your plans to buy a home this year?"
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View original content:http://www.prnewswire.com/news-releases/tax-bill-raises-concerns-about-homeownership-most-will-change-buying-or-selling-plans-300574231.html SOURCE realtor.com |