November 27, 2018 | Alex Kursman
When the Tax Cuts and Jobs Act of 2017 was passed, some real estate experts worried the reforms specific to housing might negatively impact the market. But nine months later, it looks like their worries were mostly unfounded.

According to a recent article on Zillow, the impact of housing-specific changes to the tax law (including caps on SALT deductions, higher standard deductions, and a lower threshold for full mortgage interest deductions) has been minimal—and, for the most part, has been restricted to specific areas of the country.

The most visible impact has been in areas where a high percentage of homeowners traditionally took advantage of the SALT deduction, where home value growth has been slightly slower than before tax reform was passed. But with annual home value appreciation only a fraction (0.3 percent) slower than fall 2017 (prior to the passing of the Tax Cuts and Jobs Act of 2017), it’s hardly anything to be concerned about.

The Takeaway

If you’ve been holding your breath waiting to see how the tax changes would impact the housing market, it’s official—you can exhale.


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