Every new year brings with it changes to housing markets, consumer preferences and how real estate professionals conduct business, and 2018 is no exception. It’s a year that will see sweeping federal changes take hold, as well as a number of local and regional changes that will impact housing markets in ways both big and small. From tax reform to rising interest rates to the impact of a potential major corporate relocation, here are some of the issues that will have the biggest impact on Miami real estate in 2018.
Early drafts of Congress’ tax reform efforts gave cause for concern to many real estate professionals. The National Association of Realtors decried early versions of the bill in no uncertain terms, calling them an “assault on housing” and saying they rewarded renting over homeownership.
Some of those early provisions were left out of the final bill: tax exemptions for capital gains on the sale of a home were preserved and the original proposal to cap the mortgage interest deduction at $500,000 was eventually moved to $750,000. The capping of state and local tax deductions at $10,000 was one early provision that made it into the bill President Donald Trump signed on Dec. 22.
And while some of the pricier communities in the Miami area will no doubt be affected by the reduced mortgage interest deduction, the state of Florida is somewhat insulated from the negative consequences of the tax bill.