It increases the value of a house as an investment against inflation.
It simultaneously gives people wishing to sell their homes a reason to do so now that they won’t be taxed as heavily, thus increasing the number of homes on the market.
So how those two countervailing forces work out will be situational.
“It simultaneously gives people wishing to sell their homes a reason to do so now that they won’t be taxed as heavily, thus increasing the number of homes on the market.”
How many couples have more than $500,000 appreciation in their home?