How will the new tax reform bill impact the Phoenix real estate market? I’ll go over three key points for you today.
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When it comes to real estate, there are three key changes that came with the new tax bill that you need to understand.
- Property taxes: Itemized deductions, including property taxes, are now capped at $10,000.
- Mortgage interest deduction: You can only deduct interest on a loan up to $750,000.
- Moving expenses: These are no longer deductible unless you are a member of the U.S. Armed Forces.
What do these changes mean for you?
For one thing, it is now more expensive as a homeowner because you lose those tax deductions. If you are a home seller, it makes it more expensive to move and to sell your home.
I don’t believe we will reach 7% appreciation in 2018.
In the last two years, home prices in Phoenix overall have been appreciating about 7% each year. With the new tax bill, I don’t believe we will reach that same appreciation rate this year.
If your resolution is to sell your home in 2018, or if you have any other questions, just give me a call or send me an email. I would be happy to help you.
Stay tuned to see how Cap Core Real Estate will expand our services in 2018. Have a great day!