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How Extending the Trump Tax Cuts Could Boost Savannah’s Real Estate Market

How Extending the Trump Tax Cuts Could Boost Savannah’s Real Estate Market

The Future of Savannah Real Estate: How the Possible Extension of the Trump Tax Cuts Could Ignite Growth

The Savannah real estate market is poised for an exciting period of potential growth, thanks to ongoing discussions about extending key provisions of the 2017 Tax Cuts and Jobs Act (TCJA). With certain real estate-friendly provisions set to expire at the end of 2025, the National Association of REALTORS® (NAR) and other housing advocates are working to ensure that homeowners and homebuyers continue to benefit. If the extension passes, Savannah could see increased homeownership opportunities, more active buyers and sellers, and overall economic expansion.

Tax Reform and Real Estate: What’s at Stake?

At NAR’s recent Policy Forum in Washington, D.C., housing experts and lawmakers debated the impact of the TCJA on real estate. One of the most significant talking points was the Homestead Exemption and the potential for increasing the capital gains exclusion on primary residences. If these reforms move forward, they could have a direct and positive impact on Savannah’s housing market.

The Homestead Exemption has long been a key incentive for homeownership, offering property tax relief that makes owning a home more affordable. If an increase in the exemption is included in the tax reform extension, it would encourage more Savannah residents to purchase homes rather than rent, leading to increased home values and a more vibrant local market.

How a Higher Capital Gains Exclusion Could Unlock Inventory

One of the biggest barriers to housing inventory is the capital gains tax on home sales. Under current law, sellers can exclude $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence. However, this amount hasn’t been adjusted in nearly three decades, despite rising home prices.

If Congress agrees to double this exclusion, as some experts are advocating, it could incentivize more longtime homeowners to sell. Many baby boomers and Gen X homeowners in Savannah are sitting on valuable real estate but are hesitant to sell due to high capital gains taxes. If those tax burdens are eased, we could see a wave of new listings—creating more opportunities for first-time homebuyers and growing families to find the perfect home in Savannah’s historic and sought-after neighborhoods.

What This Means for Buyers, Sellers, and Investors

For buyers, an increase in the Homestead Exemption and other homeowner-friendly tax policies would make homeownership more attainable, reducing costs and encouraging more people to put down roots in Savannah.

For sellers, easing capital gains taxes could remove a major financial hurdle, allowing them to sell their homes without fear of excessive taxation. This would create more turnover in the market, increasing available inventory and making it easier for buyers to find homes.

For real estate investors, a more dynamic market means increased opportunities for both short-term and long-term investments, particularly in Savannah’s growing downtown and suburban areas.

Looking Ahead

While the path to extending the TCJA is still uncertain, real estate professionals, including myself, are optimistic about the potential benefits for Savannah. The discussions in Washington signal strong support for maintaining and even expanding real estate tax benefits, which could drive a period of significant growth in our local market.

As a Realtor and Mortgage Loan Officer, I’m committed to keeping you informed about these important developments and how they could impact your buying, selling, or investment decisions. If you’re considering making a move in the Savannah real estate market, now is the time to start planning. Let’s connect and explore the best opportunities for you.

Stay tuned for more updates, and as always, feel free to reach out with any questions about how these potential tax changes could shape your real estate journey in Savannah!

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