I sent yesterday’s post to Lawrence – and this was his reply:
Home values falling 8% to 12% were based on taking away all of the deductions- no MID and no property tax deductions.
Fortunately, MID is set at $750,000 and $10,000 for state and local tax deductions. With these in place in the final tax bill, we have not said of those price declines. Our forecast is for a 2% price gain nationwide. You, nonetheless, bring a good point that there are still many consumers thinking of what we had said earlier. We’ll work in getting the updated info out more aggressively.
I thanked him for his response.
Are potential home buyers going to bother with calculating the specific impact of tax reform, and then not buy a house if they don’t like the result? Or would they spend less on a house?
Californians are used to heavy taxation. I’m guessing they will shrug off a few thousand more in taxes if it means getting the right home.
For those who want to estimate their taxes, and are WSJ subscribers, here’s a basic calculator: