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Real Estate Experts Worried Proposed Tax Plan Will Tank Housing Market

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Coachella Valley Region -

When details on the proposed tax plan were unveiled, housing market sector stocks dropped.

The real estate market in the Coachella Valley is healthy, while it's not pre-recession levels, it's making a steady recovery. 

"Around four percent increase every year in sales ... so recovery for housing is going really really well," says Diana Bernardi with the California Desert Association of Realtors, adding that all real estate associations have been paying close attention to the proposed tax plan and they don't like the numbers. 

"All the information that we've received from NAR, the National Association of Realtors and car, they crunch numbers, they've looked at this, ... and they estimate it's going to cost every homeowner $3,000 more in taxes when they own a home," Bernardi says this could put a damper on the real estate market and recovery.

"It think it is going to put a halt on some of the sales and home ownership," and Bernardi.

She also says California will get hit hard by capping the deduction for mortgages at $500,000, "There's not many homes that are under $500,000, the average median home price in the State of California  is over $500,000, I think it's around $554,000 so that's going to impact a lot of people."

And she says the elimination of of state deductions and capping property tax deductions at $10,000 will hurt states like California, "Losing a mortgage interest deduction or  SALT the ones that are the ones for the state that are higher taxed states are going to get hit the most."

She says this is not a partisan issue, it's a homeowner issue, "We are totally for tax reform this tax reform is not going to help California homeowners, it's going to hurt them."

Proponents of the tax plan say cutting the corporate interest rates from 35 to 20 percent will stimulate the economy, bring jobs back to the U.S. and that will be enough to make the housing market stronger but the CEO of the National Home Builders Association says if this plan passes it will lead to a recession."

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