New Tax Laws Make Experts Nervous About State of U.S. Housing Market – TheStreet

New Tax Laws Make Experts Nervous About State of U.S. Housing Market
Forty-one percent of economists polled are worried about the housing market.

Much of corporate America is celebrating the GOP tax-reform law, but don’t count a significant portion of housing experts among them.

About 41% of the more than 100 housing experts and economists that were surveyed by online real estate company Zillow (Z – Get Report) lowered their long-term expectations for the U.S. housing market following the passage of the new tax law.

When asked how the new tax law impacted their five-year home value forecast for the U.S., 41% said that they were more pessimistic, 31% were more optimistic and 28% said the new laws didn’t change their outlook.

The fear among those polled is that the American economy is already operating at full capacity and a further stimulus could result in an economic downturn.

In the nearer-term, the survey suggested that economists expect home values to rise due to limited inventory and high demand.

“The persistent short supply of entry-level homes for sale has highlighted just how bifurcated the U.S. housing market has become,” said Terry Loebs, founder of Pulsenomics. “The experts project that the value of homes in the bottom third of the market will appreciate at 6% this year, double the rate expected for the highest-priced tertile.”

Markets seem to have a similar view as the major U.S. homebuilders have had a rough 2018 to date.

Lennar Corp. (LEN – Get Report) shares have fallen more than 6%, KB Home (KBH – Get Report)  has declined nearly 2% so far this year and Beazer Homes USA Inc.  (BZH – Get Report) has declined more than 11%.

Source: New Tax Laws Make Experts Nervous About State of U.S. Housing Market – TheStreet

escape button

Be Safe.

To immediately exit the SplitReady site, click the Escape button located in the lower left corner of your browser.

Also, please ensure that you practice safe browser behavior by using incognito or private setting, clearing your cache, and closing your browser when complete.

Close