Trump GOP Tax Plan announcement ~ Homebuilder Stocks Plummet

[exotix]

*Breaking*


Homebuilder stocks rocked by tax reform plan


https://www.google.com/search?hl=en&ei=GUr7WcnWAYTjmAHO8aCgDw&q=home+builder+stocks&oq=home+builder+stocks&gs_l=psy-ab.3..0l5j0i22i30k1l5.1070663.1075268.0.1076917.15 .15.0.0.0.0.120.1179.14j1.15.0....0...1.1.64.psy-ab..0.15.1170...0i67k1j0i131k1.0.DHfc2usKqhI


http://money.cnn.com/2017/11/02/investing/homebuilder-stocks-tax-bill-mortgage-interest/index.html


The homebuilding industry looks like an early loser from the GOP plan to overhaul the tax system.



Homebuilding stocks fell sharply on Thursday following news that the Republican tax reform bill (http://www.cnn.com/2017/11/02/politics/tax-reform-republican-plan/index.html?iid=EL)would limit two key tax breaks that favor homebuyers.

The House tax legislation calls for capping the mortgage interest deduction at $500,000 instead of $1 million.


The bill would also limit the deduction for state and local property taxes at $10,000.

Watering down these tax breaks could be bad news for people who want to buy homes, especially pricier properties or ones in more expensive cities.




http://res.cloudinary.com/luvckye9s/image/upload/v1509643730/15_r5khko.png



http://i2.cdn.turner.com/money/dam/assets/171102104002-homebuilder-stocks-tax-plan-780x439.png

[Common]

The lionshare of americans do not pay anywhere near 10 grand state taxs.
The highest state tax rate is of course Liberal California, Oregon and NY at 8.95% it probably averages out to 6%

Anyone that buys a home over 500,000 isnt not going to buy because of the mortgage tax deduction.

[Mister D]

The lionshare of americans do not pay anywhere near 10 grand state taxs.
The highest state tax rate is of course Liberal California, Oregon and NY at 8.95% it probably averages out to 6%

Anyone that buys a home over 500,000 isnt not going to buy because of the mortgage tax deduction.
If I couldn't deduct local taxes I'd take a hit. I'm not honestly sure it would really be worth owning a home at that point. The two points that concerned me most have been neutralized.

[Mister D]

And you're right. Anyone who can afford that kind of property isn't going to have to worry.

[Cannons Front]

Ok so lets look at the way this sounds, all these people rant that the tax cuts are only for the rich...... The deduction on this impacts people that buy houses above $500k, that is not the "Middle Class" in most States.

Median existing single-family home values are moving higher in much of the United States, increasing 6.2 percent in the second quarter of 2017 compared with the second quarter of 2016, to $255,600, according to the National Association of Realtors. http://www.bankrate.com/finance/real-estate/home-values.aspx

The median existing single-family home price in the West rose 7.5 percent, to $372,400, in the second quarter of 2017 compared with the the second quarter of 2016.
California is really the only large area where the median is above that and that is in the large Metro Areas

Average New build house price in the US is under that with room to move still
US Average Sales Price for New Houses Sold is at a current level of 385200.0, up from 364300.0 last month and up from 366100.0 one year ago. This is a change of 5.74% from last month and 5.22% from one year ago. https://ycharts.com/indicators/average_sales_price_for_new_houses_sold_in_the_us

So again this seems to be a change the hits the rich the most.

[Tahuyaman]

Sounds like an great opportunity for those companies which remodel existing homes.