Housing’s hot — for now

Roughly a decade after the housing bubble and bust that touched off the Great Recession, the housing market looks healthy again. But the new tax law might cool things a bit.

Sales of existing homes reached their highest level in 11 years in 2017. Americans bought 5.51 million homes, the most since 2006. Many owners are still reluctant to sell, however, crimping the supply of available houses. That drove up prices for the typical home by nearly 6 percent last year to almost $247,000, according to the National Association of

Realtors.

However, the tax law signed in December by President Donald Trump could weigh on sales and price gains. It reduces the cap on the mortgage interest deduction to homes worth $750,000 or less, down from $1 million. It also caps the amount of property taxes homeowners can write off at $10,000.

Yet the tax cuts will also boost incomes, enabling more Americans to buy homes. And demand may increase as millennials age and move from apartments to houses.

Many economists still expect home sales to rise again in 2018.