Architects with blueprints at construction site
New tax law won’t impact many new home purchases
The Tax Cuts and Jobs Act won’t affect homes purchased with mortgage amounts under $750,000. This bodes well for new home builders in Arizona, which is a red-hot housing market. According to CNBC, the median home price, $255,000, is up 6% year over year. There was some speculation that the Tax Cuts and Jobs Act would soften the market by changing what was deductible as far as mortgage interest goes. The new law was the first major reform to the U.S. tax code in more than 30 years and some of its changes have been the source of confusion due to the complexity of the tax code. Fulton Homes wants their buyers to know that little change, if any, is on the horizon for the mortgage interest tax benefit and that’s a good thing
“We took a very close look at the impact on real estate on Arizona in the Tax Cuts & Jobs Act after it was signed by President Trump. We’re happy to report that a new Fulton home will not see any changes from 2017, as long as the buyer plans to live in the home,” said CEO Doug Fulton. “Some luxury builders on the very high end of the market may see some impact, but our great communities in Maricopa, Queen Creek and Gilbert are not affected. And that’s what the vast majority of builders in this state are experiencing as well,” he continued.
Fulton Homes has been building in Arizona since 1975 and even with the re-inflation in the housing market since the last down turn, is still able to offer single family homes at “Glennwilde” that start at $190,000 in Maricopa, AZ. Their communities, Ironwood Crossing, Cooley Station and Queen Creek Station in Gilbert and Queen Creek AZ have homes that start in the $200,000’s. Not a single one of them would likely go over that $750K threshold of tax deductibility on mortgage interest, which should give new home buyers peace of mind.
Higher end models by Fulton Homes, with 7-8 bedrooms, can see prices in the mid $500,000’s, but aren’t likely to touch $750,000 without significant upgrades that aren’t normally offered by the builder.