Real Estate Values:
Will 'Fiscal Cliff' Talks Jeopardize
Some Say Real Estate Values Will Take a Hit …
As the Obama Administration and Congress debate what to do about the coming 'Fiscal Cliff" debacle that Congress has set up for itself, many question the effect on real estate values of any agreement … or a failure to come to an agreement.
On one hand we have obvious alarmists saying that real estate values will themselves go "off the cliff". On the other we have those saying there will be little effect no matter what happens here.
Here is a report from the Washington Post by Kenneth R. Harney:
"Yes, cutting back on real estate write-offs could make homes less attractive financially, but other potential features of a final tax compromise could counteract the loss of deductions, softening the net impact on values. …"
Real Estate Values And The 'Fiscal Cliff'
It should be remembered in all this that NO ONE is talking about complete elimination of the mortgage interest tax credit. No one. There IS talk about capping it so that interest deductions are reduced or eliminated for very high-end purchases, but no one is talking about eliminating it for the vast majority of the market.
What effect this will all have on real estate values remains to be seen.
Real Estate Values.