People are wanting to know if the 2018 Tax Reform Bill will have any effect on real estate and the value of my home? Will the 2018 tax reform bill effect real estate and home values? I am getting asked this question buy so many people that I wanted to do a video.
Transcription
Hi everyone, this is your Tampa Bay realtor Lance Mohr and in this video, I want to talk about the new tax bill and is it going to have an effect on the real estate Market in home values. That's what we're going to talk about in this video.
As most of you know, I don't like doing videos like this. I'm not really a person that wants to get out an opinion on something. I'm more of about fact-based person so if I see facts if I see statistics that's usually what I want to talk about. But I keep on getting this question asked over and over and over again you know what's going on with the new tax bill, I don't know anything about it, is it going to have an effect on my house, is going to have an effect in the value, what do I need to know . I'm getting this so I want just to address it. I'm not going to get into a really the tax bill because I’m sure you watch other videos on that if you want to know the specifics of the tax bill. As a real estate agent, as a homeowner, as an investor the main thing that was concerning me, are they going to still allow the interest rate deductions because that would be catastrophic if they were not going to allow that, for so many people out there because the real estate market is such a huge and important market of the United States. Yes, they did allow it.
Now what they did, used to cap at a million dollars and they actually brought it down to $750,000. If you’re in areas like New York, New York, Los Angeles or San Francisco, areas of Hawaii or some of this area that is very expensive, even DC then you're going to get affected by this because it used to be a million dollars now and 750,000. For the vast majority of all people, it does not really do have an effect on it.
The other thing, when it comes to real estate if you look at real estate. For over the last 50 something years it comes down to the “consumer confidence”. That's the number one driving point. When the Consumer Confidence is really high, we're going to be in the seller's market. Prices are going to be going up and that’s what you've been seen over the last several years. It’s slowly been picking up and up and up and of course, home prices are going up.
We are at a 17-year high on consumer confidence. I remember back in 2007, 2008, and 2009 in Florida, it was horrible. Consumer confidence out here was just horrible. You start getting into late 2008, 2009 across the whole United States it was pretty much horrible and prices were going down and we had these foreclosures.
I really pay attention to what the consumer confidence is like and when the consumer confidence starts spiking up. I know we're going to be in the seller's market and when consumer confidence starts spiking down. I know we're going to start leveling out and it may turn into a bit of a buyer’s market. Personally, I don't like seller’s market. I don't like buyer’s market. As you know, I’d like a stable market. I don't think it's going to have any effect on the vast majority of anybody out there. We are still in a good market. I’m speaking for the Tampa Bay area because I pull the statistics in Tampa but there's no indication whatsoever that our market is slowing down. So far, we're at the beginning of January and it's extremely busy. I’m even out talking to other realtors and builders they're saying the same thing. They’re swamped right now.
They can’t believe how busy it is in such an early part of January. I don’t think most of you have to worry, have anything to worry about. If you have any questions or anything, let me know I’d be more than happy to help you out (813-317-4009) and don't forget to subscribe https://www.youtube.com/user/Tampa2Enjoy. If you want to be notified of upcoming videos just hit the little belt next to subscription and anytime a new videos uploads you’ll be notified. I wish you the best of luck in buying or selling or buying an investment property. Have a great day.
