A deficit of houses, together with brisk economy and high demand have caused home prices in the biggest U.S. cities rise above $1 mln, diminishing customers’ worries of the lower benefits from a high-priced real estate deriving from Trump’s tax changes, data reveals.
House sales costing $750,000 or more have leaped by double digits during each of last three years, closings figures from realtor.com for 30 of east and west counties demonstrate.
Sales of homes lower than $750,000 decreased over the last two years because of small number of houses costing $500,000 and less, and generally sales were dragged down by the bigger market size of low-price end, the data says.
Considering that the Trump’s tax revamp relates to houses aimed to be sold for more than $750,000, and the data showing that generally sales dropped means the change to tax cannot be the root of the problem.
The introduced law stops mortgage debt deductibility at $750,000 and yearly taxes on property at $10,000. House sales were anticipated to suffer as less customers would be allowed to use mortgage interest and property deductions for tax payments.