It was certainly a long battle in Washington, but Federal Tax Reform was approved by Congress and will go into effect for Americans in 2018. Whether or not you approved of this legislation, this tax reform bill will definitely have an impact upon Pinellas home sales.
Just what effect might the new tax act have to motivate consumers to buy Florida real estate now? For one thing, the Baby Boomers born from the 1946-1964 are coming to Florida in record numbers. Did you notice the large increase in traffic each year these past few tourist seasons? This demographic group has generally delayed their retirement, years beyond past generations. They are healthier and have much more spendable income than past generations. For many, it’s just plain time to relax and enjoy their retirement years. What better place than the beautiful beach communities along Pinellas County.
Also fueling the home buying surge is somewhat due to the new tax law not allowing a deduction for states with high state income taxes. We are hearing that statement weekly at our model home. These customers are already tired of being burdened by state income taxes which Florida doesn’t have (absolutely no state income tax in Florida!), but now they can’t even deduct that excess state tax from their federal income tax. Straw on the camel’s back some say!
Two other factors come into play now that 2018 is upon us. Every customer that is considering a new Florida home is reading about how prices will increase due to the harsh hurricane season that we just witnessed. There is only so much capacity to manufacture more plywood, sheetrock, doors, windows, etc., and due to the Supply & Demand equation, prices might rise a good deal for the coming year. That $600,000 new home could easily cost $660,000 in another year. People understand that reality.
Also, many or our customers are also remarking about their percentage increase in their IRA’s and Pension Plans this past year. One of our customers that we met yesterday was touting a 18% increase in their retirement fund in 2017, much higher than they ever realized with the low increases these past 10 years. Their comment was “We are ready to enjoy the American Dream due to our savings from their IRA’s”. America, what a country!!
No matter what side of the isle you favor in Washington, the United States economy and stock market are both in very strong positive directions for Americans. Pension Plans and IRA’s are at record levels, with more spendable income in the pockets of Americans than ever before. Coupled with more cash in their hands with each pay check, even working families are feeling confident about purchasing a new home.
Just maybe early 2018 will prove to be the best time to buy a modern new energy efficient home, raised to FEMA standards, with all the new Florida building codes protecting against hurricanes. Hey…. maybe it’s time for a New Year’s Resolution to finally buy the home of your dreams!!
GHD Construction Services, Inc. has constructed 6,500 homes since 1971, and has the new 2018 “Key West” home at 239 144th Ave. N, Madeira Beach. If you have any questions pertaining to new home construction, feel free to call at (727) 954-8345, or email to: tweisser@ghdcsi.com. Meanw
Article by Tom Smith