With the new budgeting and finances set for the coming year many experts in the real estate industry and paying heed to the recent change in Capital Gains Taxes that are affecting the market. Having been set at a standard 18% in the past for all gains on sales the new rate would venture upwards of 28% for the highest gains in money through the successful sale of a property – meaning substantial losses for many of those caught in the set gain field that would fetch such a high price.

The result of this gain is expected to take its toll on the property market throughout the country in a number of different ways. For one, working with the continued low mortgage rates offered by lending institutions, this is expected to see more and more properties placed onto the market before prices appreciate too much into a realm where their sale would mean an overall loss in earnings – something that will help drive down the cost of homes on the market due to a higher saturation of properties available for purchase. This in turn is also expected to stimulate a stronger market for first-time buyers looking to make a purchase outright that may have felt hampered in the past due to exorbitant prices in desired purchase locations simple due to the fact that these individuals will have a greater selection of various priced places to choose from.

This may have a negative impact for some people seeking re-mortgages, however, as lower valued homes tend to drive down the overall value of a re-mortgage taken out and home owners may be tempted to avoid this form of financing in months to come. Indeed, recent figures do in fact show an overall decrease in the number of re-mortgages being approved on the market today, with lending institutions favoring first-time loans over any other offered to date in the past few months.