The “More Homes on the Market Act,” reintroduced by House Representatives Jimmy Panetta and Mike Kelly, has garnered significant attention from the real estate industry, particularly the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). This proposed bipartisan bill aims to increase the capital gain exclusion amounts on the sale of a primary residence to $500,000 for single filers and $1 million for joint filers. Additionally, the bill suggests indexing the exclusion for inflation to provide much-needed tax relief to California homeowners, particularly senior citizens who have been unable to sell their homes due to high tax burdens.
Jennifer Branchini, a Bay Area REALTOR® and C.A.R. President, expressed her appreciation to Congressman Panetta for reintroducing the “More Homes on the Market Act.” She noted that the bill could provide significant help to California homeowners, especially those who have found it challenging to downsize and access the equity built up in their homes because of the capital gains exclusion passed 25 years ago without any indexing for inflation. As a result, many families are unable to move to smaller homes, and there are fewer homes available for younger and first-time homebuyers, driving up demand and home prices even more.
According to the National Association of REALTORS®, up to 95 percent of single homeowners and 68 percent of married homeowners who purchased their homes before 2000 may face capital gains tax if they sell their homes this year. Therefore, the “More Homes on the Market Act” could significantly benefit homeowners who want to sell their homes and move to more suitable accommodations.
The CALIFORNIA ASSOCIATION OF REALTORS® is one of the largest state trade organizations in the United States, with over 220,000 members dedicated to promoting professionalism in the real estate industry. The association has been a leader in California’s real estate sector for over 110 years, with its headquarters in Los Angeles. The association’s goal is to improve the real estate industry’s overall performance by providing its members with the latest tools, education, and resources necessary to achieve success in the profession.
