The mortgage interest deduction currently under the scrutiny of the Debt Reduction Commission has recommended that the Mortgage Interest Deduction (MID) be means tested at a minimum and eliminated completed at the extreme.
NAR’s Chief Economist, Lawrence Yun, tells us to “brace for a 15% loss in home values if MID is eliminated. That is how much we expect values to fall as buyers discount the value of the deduction in their purchase offers.”
The question becomes, in an economy where 19% of it GDP comes from the real estate industry adjust to this tornado possibly coming its way?
I don’t want to become an alarmist, but in many of our markets, values have dropped 30% or more already. I know they couldn’t weather another storm like this! Realtors everywhere are reaching out to their representatives on this issue. I’m suggesting we all make an effort to be heard on this one! Thank you!