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This is a good article in today’s HooK that succinctly defines the debate about the Mortgage Interest Deduction.*
So what does all this mean for the Charlottesville area? Realtor Jim Duncan, who blogs about the local housing market at realcentralva.com, believes the elimination of the mortgage interest deduction is not a bad idea overall, as long as it’s done in conjunction with comprehensive tax reform. Whilte(sic) such thinking places him at odds with many of his desperate colleagues, Duncan points out that the deduction rarely plays a decisive part in the homebuying process.
As with everything, do your own research about the Mortgage Interest Deduction.
The number of references and bills related to “mortgage” in Congressional bills is astonishing. As with most bills, the only ones who are likely to understand these bills are the ones who wrote them (the lobbyists).
Related articles after the break:
– Stories about the Mortgage Interest Deduction on RealCentralVA.
– Outstanding article at the New York Times about the Mortgage Interest Deduction.
– As of 2008, Virginia ranked #5 in states claiming the MID
– A bit of an aside; this is a great title for a bill: H.R. 1702 – Ending Taxpayer Subsides for Yachts Act
– What’s the Future of the Mortgage Interest Deduction? (WSJ)
– Predicted effects of the FairTax on Housing
– Deficit Panel Targets Mortgage Interest Deduction (NPR)
* So far this year in the Charlottesville MSA:
– 1558 real estate transactions have closed (in the Charlottesville MLS)
– 79 agents have closed more than 10 sides
– 190 agents have closed more than 5.
– about 350 haven’t closed one.
Compare that with the same timeline in 2010:
– 1615 real estate transactions closed
– 75 closed more than 10 sides
– 205 closed more than 5.
– about 350 or so haven’t closed one.
2006 was a much better year for agents.
* But didn’t refer to my colleagues as “desperate in this context.”