5 reasons to like housing ETFs despite inventory issues

Will Tax Reform Put a Cap on House-Price Growth?

The new tax bill lowers the value of the mortgage interest deduction to $750,000 from $1 million. The policy also “caps at $10,000 the amount that can be deducted for state and local taxes.” While apparently it appears to weight on housing sector, chief economist at Moody’s Analytics believes that “they should weigh on house-price growth.”

The analyst reasons out that there are certain housing markets that rely on taxpayers “who use those tax benefits, which have been capitalized into house prices.” In the absence of these benefits, prices are likely to come down.

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