720-724-8187 rogelio@vidabroker.com
Tax Reform and the Mortgage Interest Deduction

 

I know you see all that drama in the news… nuclear threats, no disaster help to Puerto Rico, NFL kneel-downs, the Russian collusion. You probably also have seen the other big one: Tax Reform. Look, it’s Trump and the Big 6 behind the plan. Of course, reform is all about benefitting the wealthiest people in the U.S. (see NPR Article). This plan, however, would still leave it’s mark on homeowners and would-be homeowners one way or another.

In short, the plan aims to expand the standard deduction from $6,350 to $12,000 for individuals (and from $12,700 to $24,000 for a couple). Many itemized deductions would disappear but the mortgage interest deduction, a long-time benefit to homeowners would still be in place. However, with the increased standard deduction, many homeowners would just ignore the itemized deduction. Those that are renting would no longer view the mortgage interest deduction as a benefit of homeownership and potentially opt to keep on renting everything else being equal. That brings up a couple of other points related to renters vs homeowners. Below is a chart showing who has benefited most from the mortgage interest deduction.

 

Those that have the highest earnings benefit the most from the current mortgage interest deduction. Does that mean this tax reform plan is better for lower income earners? Of course not. Here is some more information. According to Lawrence Yun from NAR, ..” the latest Federal Reserve data show the typical wealth of a renting household has fallen from $5,900 to $5,100 since 2010, while homeowning households have seen their wealth jump from $192,800 to $231,400.” In short renters just rely on work income to save up and are only helping the landlords get richer. With this tax reform, the higher standard deduction benefits renters save in the short run but I fear that the long-term wealth building opportunity of homeownership will be lost.

 

Looking to buy or sell your home OR business? You can contact me  by email  or call 720-253-8513.


 

References:

Realtors: Don’t penalize homeowners

GOP tax plan gives people a break for not buying houses 

Tax Reform Hits Homeowners 

2016: Homeowner’s Net Worth Will Be 45x Greater Than A Renter

Touted As Middle-Class Win, GOP Tax Plan Directly Benefits Wealthy, Analysis Finds 

 

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YOUTUBE

As we settle into spring 2025, Denver’s real estate market is revealing some critical shifts. Whether you’re buying your first home or preparing to sell a property you’ve outgrown, understanding the market’s current temperature—especially through the lens of months-of-supply—can help you move with clarity and confidence.

📊 What Is Months-of-Supply?

Months-of-supply tells us how many months it would take to sell all current homes on the market at today’s pace, assuming no new listings come in. It’s one of the best ways to gauge whether buyers or sellers have the upper hand:

  • 0–4 months: Seller’s market
  • 4–6 months: Balanced market
  • 6+ months: Buyer’s market

📍 What’s Happening in Denver?

Denver currently has a 3.1-month supply, nudging close to a balanced market. While still favoring sellers slightly, inventory is rising fast—up 11.2% year-over-year and a striking 70.6% above 2019 levels. New listings also rose by 18.1% over the past year, though still slightly below pre-pandemic levels.

Now here’s a key point: closed sales in April 2025 were down 3.2% from last year. Fewer completed transactions suggest that buyer activity is cooling even as more homes hit the market. This shift reflects growing caution among buyers, likely tied to higher mortgage rates and affordability pressures.

In simple terms: we’re seeing more homes for sale, fewer homes being sold, and slightly longer time on market. This is a clear signal that the market is transitioning—and that timing, strategy, and pricing are more important than ever.

🏙️ Comparing Other Cities

Miami Area – 7.8 months of supply

Buyer’s market with inventory up 37.5%, but closed sales flat. Homes are sitting.

Austin, TX – 5.4 months

Moving toward balance. Listings up 19.7%, but also seeing a slowdown in closed deals.

Phoenix, AZ – 3.6 months

Still seller-friendly, but inventory has surged 54.6%. Like Denver, the pace is slowing.

In comparison, Denver’s sharp inventory rise paired with declining closings indicates one thing: competition is heating up—especially for sellers.

🤝 Buyers: Opportunity Is Knocking

  • More Inventory = More Choice

  • Stronger Negotiation Power: Fewer bidding wars, more room to talk terms.

  • Act Smart, Not Fast: It’s not about “the deal”—it’s about the right deal.

💼 Sellers: Stay Strategic

  • Price It Right: With fewer sales happening, homes that are overpriced are sitting.

  • Presentation Wins: You’ll stand out when your home is clean, staged, and easy to show.

  • Act Now While It’s Still a Seller’s Market: We’re on the edge—waiting could cost you.

📲 Let’s Talk—No Pressure

Whether you’re dreaming of a new home or prepping to sell, let’s have a free, no-obligation conversation to map out your next move.
📞 Text/call me directly at 720-724-8187
📅 Or grab a time that works for you: Book Here

You’ll get real insight, no pressure—just a smart path forward based on your goals.

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