While President Donald Trump and Congressional Republicans celebrate their progress with the tax code overhaul, real estate agents across the country have banned together to protest tax revisions that will affect their clients and the residential real estate industry as a whole.
Though the 2018 tax plan continues to experience revisions - with more promised - as it works its way through Congress, agents' concern over existing tax policies related to home ownership continue to grow. Bipartisan groups formed by real estate agents have assembled throughout the United States to urge more consideration for American homeowners.
Though a handful of components of the tax bill would impact homebuyers and future homeowners, two specifics have drawn the majority of frustration from the nation's real estate agents:
The proposed elimination of local property tax deductions
The proposed reduction for the mortgage-interest deduction
Both of these proposed measures would reduce the buying power of future homeowners, making it even more difficult for homebuyers to afford a home, especially in the most expensive of the nation's markets. According The New York Times, these new aspects of the tax plan could create significant declines in home values for these high-cost locations.
Though Denver is not the most expensive real estate market, it is a location that could be impacted by these measures. With average home prices more than doubling the nation's average, entry level homes in Metro Denver are already difficult for many to afford. Furthermore, Denver's popularity has created a listing shortage. This listing shortage will likely grow if the tax plan passes as-is existing homeowners will be grandfathered into the œold tax plan, further incentivising Coloradans to avoid selling their homes.
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