Real estate experts think state tax increases could drive buyers away

MARYLAND. – Lawmakers and Governor Wes Moore have finalized a state budget that includes $1.6 billion in tax increases. Individuals earning more than $500,000 a year are in one of the new income tax brackets.

Meanwhile, property taxes are expected to rise across local governments. Republican lawmakers think this will burden the taxpayers, and make Maryland less competitive to neighboring states.

Real estate agent Marco Smith, who works under eXp Realty, states the trends he’s seeing currently are positive. “Since December, we have seen an increase in inventory, not just across the state, but nationwide. We’re at the highest amount of inventory since 2009.”

This rise in inventory has allowed the housing market to boom in the area. However, he does have concerns over the tax increases. He believes it will cause buyers to hesitate to move to the state.

“I think with the taxes rolling out, especially with property taxes, it is making Maryland a less affordable state to own a home. That is one thing to consider if you are shopping at the top of your budget.”

Smith highlighted the fluctuating nature of the real estate market and its unpredictable future.