What the Tax Plan Could Do to OC Housing

Blomquist: “We will likely see even more demand for homes priced below the $950,000-to-$1-million price point (approximately where a $750,000 loan would be needed), putting more pressure on the mid to lower end of the market.”

IRVINE, CA—The Orange County market is disproportionately impacted in a negative way by the newly passed tax bill, so the high-end housing sector here may see some softening of demand, ATTOM Data Solutions‘ SVP Daren Blomquist tells GlobeSt.com. The firm recently reported that as a result of the plan, the mortgage interest deduction will be lowered for 3.9% of homebuyers nationwide (roughly 100,000 a year), down from 9.8% of the market impacted with the MID cap at $500,000 instead of $750,000.

The firm’s report also states that the property-tax deduction will be lowered for 4.4% of homeowners nationwide (4.1 million).