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December 2017   Volume 43, Number 12      
 

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Trump Tax Reform Sparks Fears for California Realtors

California’s largest group of realty agents has warned that a Republican tax-reform proposal could significantly reduce the attractiveness of purchasing a home in the Golden State. California Realtors Association President Geoff McIntosh suggested the Republican plan to eliminate state and local tax deductions, such as property taxes, could hurt California and its housing market.

“The average California homebuyer could end up paying $3,000 more a year in taxes under the proposal,” McIntosh said in an emailed statement.

The reform plan is only expected to affect homebuyers who choose to itemize their deductions because it will strip away their ability to deduct property tax payments on their federal returns. Despite the fact the tax changes could cause home prices to decline according to economists, home prices in the Bay Area have been rising as much as 15 percent per year.

That means any tax-reform fallout that might tend to reduce home prices could be tough to notice, said Christopher Thornberg, a founding partner and economist with Beacon Economics.

President Donald Trump and Republican legislative leaders, however, believe the tax reforms and cuts would benefit the nation’s economy, help bolster job creation, and slash corporate taxes making it easier for businesses to invest.

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In this issue:

Homebuyers Rush to Riskier Mortgages As Home Prices Rise

Amazon Ventures Into Real Estate With Hire a Realtor Service

Digital Real Estate Platform Home61 Raises $4 Million

Homebuyers Can Now Crowdfund Their Mortgage Down Payments

Millennials Going Over Budget to Buy Homes

National Flood Insurance Program Might Not Be Able to Fulfill Obligations to Homeowners

San Francisco Most Over-valued Market in U.S.

Trump Tax Reform Sparks Fears for California Realtors

Weekly Mortgage Applications Stall Along With Rates and Home Sales

10 Reasons to Schedule a Seller Counseling Session



 


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