03 Nov Proposed Tax Bill in the States Whacks Homebuilders
There is an old saying…the stock market has predicted 7 of the last 3 recessions. And so it is today. News out of the U.S. regarding proposed tax bill which would decrease incentives for people to buy homes has caused 5-10% drops in the stock prices of all the major US homebuilders. In my opinion, an over-reaction. I imagine we may seem some further declines over the next week before calmer heads prevail. Yes, the deductability of mortgage interest may be reduced, and the availability of some mortgages may be reduced. However, trust me, home ownership has been an essential part of long-term financial planning and it is rightly a goal of every warm-blooded American. Home buying will continue, unabated.