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NAHB Housing Market Index: 16 vs. 17 expected, 17 prior. "The spring home buying season is...

NAHB Housing Market Index: 16 vs. 17 expected, 17 prior. "The spring home buying season is getting off to a slow start due to persistent concerns about home values as more foreclosures seem to be hitting the market, increasingly restrictive lending requirements for home buyers and builders, and the slow pace of economic recovery," NAHB's David Crowe says.
Comments (3)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Housing is dead for the foreseeable future. There is no incentive to buy when there is so much uncertainty about tax implications, jobs and prices. You can rent for less than buying and wait out the ongoing problems.
    18 Apr 2011, 10:27 AM Reply Like
  • tka1115
    , contributor
    Comments (34) | Send Message
     
    Seems to me the incentive for the housing market would be to phase out the mortgage deduction so that, say, over the next twenty years there would be a five percent reduction in the deductible portion of an owner-occupant's mortgage interest each year. Next year you could deduct 95% of your inteest. The following year 90% an so on regardless of when you bought the house. It would be an incentive to buy soon to get the benefit and a longer term removal of government from the housing industry.
    18 Apr 2011, 11:23 AM Reply Like
  • optionsgirl
    , contributor
    Comments (5031) | Send Message
     
    There was a time when credit card debt and personal consumer loans were fully deductible. Those deductions went the way of the dodo bird in the early 1980's. One day we had them, the next they were gone.
    I can't say that will happen with the mortgage interest deduction. To do so would further negatively impact the housing market. Home prices would drop further of interest was not deductible.
    With this president and his fondness for leaning on the middle class, which he's dubbed "wealthy", it wouldn't surprise me to see income phase outs for mortgage interest deductions. That's already been done on student debt. If you pay your children's college loans, and reach a particular income level, you can't take those write offs. The more you contribute, the less you are allowed to keep.
    18 Apr 2011, 11:54 AM Reply Like
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