If the House’s plan to cut the mortgage interest deduction to the first $500,000 of a loan becomes law, it will remove a benefit for new homeowners in many high-cost markets.
The share of recent purchase loans from $500,000 to $1 million is as high as 48% in San Francisco, 38% in Los Angeles, and 22% in the Washington, DC, area, Hale said.
“For some of those homebuyers, the lack of those deductions might mean it makes sense to buy a home or it doesn’t make sense to buy a home,” Hale said.
Home prices could fall because of lower demand. But more-expensive markets would be hit hardest. DC, Hawaii, California, New York, and Connecticut have the most people with mortgages over $500,000, according to The Washington Post.
More progressive BS promoted by Yahoo.
Time for a flat tax
Good. Do away with it. Why should the rest of us have to make up the difference? Same with the child care credit. Same with a hundred other credits. It should be based on income and income only.
https://www.zillow.com/san-francisco-ca/home-values/
The median home value in San Francisco is $1,249,000. San Francisco home values have gone up 11.7% over the past year and Zillow predicts they will rise 2.3% within the next year.
The median list price per square foot in San Francisco is $994, which is higher than the San Francisco Metro average of $463. The median price of homes currently listed in San Francisco is $1,199,000 while the median price of homes that sold is $1,193,492.
The median rent price in San Francisco is $4,450, which is higher than the San Francisco Metro median of $3,295.
Home sales may increase as lower income people would selling their city homes, and be seeking homes in the more rural area and then commute, rather than live in the city. Time for more suburban track homes to be built under 300K each.
Eliminate it and the market price of houses will come down accordingly and the result will be a wash.
Why should tax payers in harard county tennessee subsidize the interest on million dollar home buyers in SF and NY?
Yahoo?
Fegedabowdit.
Even dumber than CNN.
But just as corrupt.
But this GOP plan hurts rich people the most.
How can that be?
/s
I’ve owned six homes in my life. The deductibility of mortgage interest had exactly ZERO influence on my buying decision.
But this GOP plan hurts rich people the most.
How can that be?
/s
Mainline Marxist BS.
If deducting mortgage interest is such a great deal...
... give me a dollar and I’ll give you back 35 cents.
...as many times as you want to do it.
I’d be more interested in the capital gains end. I sold a second home and took a beating.
To like maybe natural levels????
The biggest benefit of home ownership is equity.
So finally we have a tax on rich liberals in the expensive coastal enclaves—cry me a river!
BS
We taxpayers are paying up to 30% of the mortgage costs of those rich democrats in New York, San Francisco, and Boston.
If they want their states and cities to provide welfare and free public schooling for illegal aliens then let them pay for it out of their own pocket, not mine.
I do own a home and therefore have skin in the game. That being said, I love the following statement made by the author:
“Both versions could end up weakening home prices”
Is that the same as making housing more affordable?
It’s all about who’s ox is being gored and how they spin it as a result.