No. First, the costs of the income tax are removed thereby lowering the price. Anti fair tax posters have said this decrease will be 9%. That happens first. That's why the price drops to 273,000. THEN add the nrst.
I will have to earn 15% more than that (my nrst effective rate is 15%) to pay the tax due on it. Ends up I'd have to earn 321,176.
That's less than I'd have to earn under the income tax. under the income tax, I would have to earn 400,000 because my EFFECTIVE rate is 25%.
Real prices of houses go down, not nominal prices. I'm not sure you get the difference.
Removing the income tax is only one, small factor is the cost of a house, market forces play a larger part. If people have more disposible income, it is more likely that prices will increase as home buyers compete with eachother.
Do you think that the FairTax would be paid at closing? I do. And I doubt that the mortgage company would be willing to cover that, as they want the owner to put in some actual equity in the house.
If the FairTax ever passes, after a few short years of experience, taxpayers will be clamoring for the old income tax, or flat tax.
Before screwing up the entire country with this pie-in-the-sky tax scheme, try it out in some pilot state, see what happens in real life, rather than your pipe dream. I'll bet there would be a victim volunteer state. See if the population moves out, or moves in. See if economic activity increases, or becomes seriously gummed up. See the disappearing tax base.
What, you say people will go to a black market (or a neighboring state - even though made illegal) to buy stuff? Of course they will - just what would happen if this travesty were to be enacted for the entire US. And it would grow a whole new mob enterprise, much bigger than booze or drugs - and everybody but a few goody two shoes would participate. Perfect use for the new trans-US highway.