New tax law and rushed home sales in Dec

Dec 2, 2017 16 Comments

Once the new tax law takes effect on Jan 1 next year, the hold period for homes that have tax exempt sale proceeds goes up from 2 to 5 years! This means people who have purchased 2 years ago with plans to sell will have to wait another 3 years to realize those gains. How likely do you think it is to see a rush of home sales in December before that happens? The problem is I think only cash buyers are going to get bargains (what’s new) because most lenders can’t close within 30 days...especially in Dec.

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  • Uber / Eng
    FMzLsC

    Go to company page Uber Eng

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     FMzLsC
    You think people can't wait for another 3 years of growth?
    Dec 2, 2017 6
    • Uber / Eng
      FMzLsC

      Go to company page Uber Eng

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       FMzLsC
      Those people who think (wish actually) a correction are the ones without houses and waiting to buy.
      Dec 3, 2017
    • Uber / Eng
      Rqwx5o

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       Rqwx5o
      There have been many corrections in the market and there will be many more in the future. Not a guarantee that the next correction brings prices below current rate but it's definitely possible
      Dec 3, 2017
  • OP has a valid question - curious on people’s thoughts. I personally think that it may have some rushed home sales but not many. If you aren’t ready to sell right away it’ll be hard to rush sell. However, real estate agents will be using this to get people who are “thinking about it” to go and sell ASAP. I don’t think it’ll be drastic but will have some effect.
    Dec 3, 2017 1
  • Oracle
    FreshRoast

    Go to company page Oracle

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     FreshRoast
    You will need to publicize this idea(rumor?) so that people are aware and do actually sell. Write a LinkedIn article.
    Dec 2, 2017 1
    • OP
      Publicizing? I’m just asking a question. Both the house and senate versions of the bill are already out there so it’s not a rumor if congress says so.
      Dec 2, 2017
  • OP
    I sold my house earlier this year. Buyer was all cash and said they would close in 10 days. They closed in 2 weeks because of some mishaps.
    Dec 3, 2017 1
    • Good luck doing it in December. If people list their house today, takes a week to get offer and then 2 weeks to close. Given the holidays, it will very likely fall into next year and end up having to pay income tax.
      Dec 3, 2017
  • Even with cash buyers, given the holiday season, no way they can close before new year.

    Plus, because people who owns less that 5 years will be holding, there will be less supplies, and the housing price may go up even more.
    Dec 3, 2017 1
    • OP
      Well, that’s the thing. It *may* but there are plenty of people out there including realtors who think a correction is in short order. So you are now choosing to take that risk.

      BTW I sold my house earlier this year. Buyer was all cash and said they would close in 10 days. They closed in 2 weeks because of some mishaps. Either way, we just have to wait and see. It’s already December. :)
      Dec 3, 2017