It’s amazing what a really bad idea phasing-out the mortgage interest deduction is in light of the current real estate market. It seems as if the current administration is a bit contradictory when trying to stabilize the housing market and pull the rug out from the mortgage industry at the same time. If this idea is implemented, it will have a negative effect on the Buckhead real estate market. The NAR had some great insights into what a bad idea the phase-out of the mortgage deduction is.
“Though the added tax burden is only for the top income households, the unintended impact is lower home values for most homeowners. If prices for top end houses decline, then the price at the next rung of the housing market also needs to fall to attract buyers, and so forth.”
“California and Florida will be the top two states to take a hit from the changes in mortgage interest deduction. Stay tuned for the final impact results sometime next week.”
The article focused on California and Florida as the top states that will take a hit from this awful proposal, assumedly because there are a lot of expensive properties in these states. If the focus was on communities that would take a hit from the proposal, Buckhead would be at the top of the list. It’s time to call your elected officials, John Lewis represents Buckhead, and tell them that trying to torpedo the Buckhead real estate market won’t do the country any good.
Related posts:
Listings identified with the FMLS IDX logo come from FMLS, are held by brokerage firms other than the owner of this website and the listing brokerage is identified in any listing details. Information is deemed reliable but is not guaranteed. © 2012 First Multiple Listing Service, Inc.
Lenders are not being shy about offering the most aggressive rates of the year as they need to get as much new business in the door and locked now just in case mortgage rates move higher in the day’s to come. The only loans I recommend floating are those that can be locked on a shorter commitment period in the next few months.