Real Estate Experts Worried Proposed Tax Plan Will Tank Housing - Palm Springs News, Weather, Traffic, Breaking News

Coachella Valley

Real Estate Experts Worried Proposed Tax Plan Will Tank Housing Market

Posted: Updated:
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."

  • Most Popular StoriesMost Popular StoriesMore>>

  • Cathedral City

    Unsolved Candy Cane Lane Shooting Haunts Mother

    Unsolved Candy Cane Lane Shooting Haunts Mother

    Friday, November 17 2017 10:32 PM EST2017-11-18 03:32:48 GMT

    This should be a happy time of year for Roxanne, she has a beautiful baby girl, a boyfriend she loves, but this time of year brings back horrible memories.  "I woke up to no David, no baby it was horrible, it was the most horrible thing I could ever experience," she says. On December 19, 2015, Roxanne was days away from giving birth to her first child, a baby boy. She and her then boyfriend 38-year-old David Chavez, did what many do during the holidays, went for a dri...

    This should be a happy time of year for Roxanne, she has a beautiful baby girl, a boyfriend she loves, but this time of year brings back horrible memories.  "I woke up to no David, no baby it was horrible, it was the most horrible thing I could ever experience," she says. On December 19, 2015, Roxanne was days away from giving birth to her first child, a baby boy. She and her then boyfriend 38-year-old David Chavez, did what many do during the holidays, went for a dri...

  • Bermuda Dunes

    Local Gun Supporter Destroys AR-15

    Local Gun Supporter Destroys AR-15

    Friday, November 17 2017 2:14 PM EST2017-11-17 19:14:17 GMT
    Chad Vachter has always loved guns. "I think everyone has a right to defend their home, their way of life," he said. Vachter has been a supporter of The Second Amendment since he was young. "I first got into guns when I was a kid hunting with my father," he added. Related: Gun Safety Saves Lives During Holidays Among his prized weapons is an AR-15, but not anymore. Vachter decided to destroy his AR-15 with a sledge hammer. Blow by blow, the semi-au...
    Chad Vachter has always loved guns. "I think everyone has a right to defend their home, their way of life," he said. Vachter has been a supporter of The Second Amendment since he was young. "I first got into guns when I was a kid hunting with my father," he added. Related: Gun Safety Saves Lives During Holidays Among his prized weapons is an AR-15, but not anymore. Vachter decided to destroy his AR-15 with a sledge hammer. Blow by blow, the semi-au...
  • Man Accused in Decades-Old Desert Hot Springs Murder of Teen in Custody

    Man Accused in Decades-Old Desert Hot Springs Murder of Teen in Custody

    Friday, November 17 2017 11:55 PM EST2017-11-18 04:55:23 GMT

    A man accused of gunning down a Desert Hot Springs teen more than two decades ago was in custody Friday in a case recently reopened by Riverside County prosecutors...

    A man accused of gunning down a Desert Hot Springs teen more than two decades ago was in custody Friday in a case recently reopened by Riverside County prosecutors...

Powered by Frankly