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:

http://www.wsj.com/graphics/republican-tax-plan-calculator/

Jim the Realtor

Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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