47% of buyers said they have adjusted their search criteria as a result of the reforms, down from 56% last year.

There has been a drop in the share of homebuyers who say that 2018’s major tax reform is impacting their home search. According a poll by Redfin, 47% of buyers said they have adjusted their search criteria as a result of the reforms, down from 56% last year following the tax changes. "Last year more homebuyers were worried that tax reform would hurt their homebuying budgets, but it turns out tax reform wasn't all bad or all good for homebuyers," said Redfin chief economist Daryl Fairweather. "Some homebuyers, especially in low-tax states, are now paying less in taxes overall, which has left them with more cash for a more expensive home.” Fairweather added that for others, not being able to deduct as much of their property taxes or home loan interest from their taxable income was enough to make them move to a more affordable area. Asked how the tax reform law had affected their plans to buy a home, a lower price range was the most common response because of decreased benefits on high-priced homes (14%, down from 16% last year). “In the long run, we will see demand for luxury homes in high-tax states suffer the most because those homes have been hit the hardest by this tax reform, and there's actually early evidence of that already happening," Fairweather said. 

Source: Mortgage Professional America