Real estate experts are considering the potential end of the capital gains tax on home sales, as suggested by President Donald Trump. The National Association of Realtors estimates that 15% of current homeowners would be affected by the tax if they sell in today’s market, with the median home price in June being $435,300.

The current capital gains tax on homes, which hasn’t changed in 30 years, is causing some retirees to delay downsizing due to potential tax implications. The tax, assessed on profits over $250,000 for individuals and $500,000 for couples, mainly impacts high-end homeowners and baby boomers looking to sell their homes.

Experts have differing opinions on the impact of cutting the tax. While some believe it could boost confidence in the housing market, others argue that reducing taxes on home improvements might be more beneficial. The tax only applies to the difference between the purchase and sale price of a home, excluding certain improvements.

Despite significant increases in home prices over the past five years, particularly during the pandemic, the lower end of the market would not exceed the current exemption threshold. Some analysts suggest that confidence in the housing market is more crucial than changes to the capital gains tax to drive sales and purchases.

Read more at CNBC: Why cutting capital gains tax on home sales wouldn’t solve housing issues