MKC - are the more expensive houses new ones? The monster houses, that are on teeny-tiny lots? Older houses in this area (Virginia suburbs of Washington, D.C.)are not appreciating in excess of 6% per year, although I think new houses are much more expensive.
I don't see how the tax break would cause you to move into a bigger house, that's exactly the opposite I would have predicted. In the past, prior to the new tax law, if your house appreciated, you had to roll over the gain or pay tax on it, so you had to move to a bigger house, or at least a more expensive one. Now, you can sell your house and keep the gains, spend it, invest it, or pay cash for the house instead of taking out another mortgage. |
