NAR (whom I never beleive because they constantly exaggerate everything) has stated this will instantly remove 15% of value from all housing across the board. Now, I don’t beleive that number, but I also don’t think it is negligible, especially in high valuation areas.
I think another thing you should be well aware of is that Congress is now debating the whole debt ceiling issue, and part of that is an idea to eliminate the mortgage interest deduction. Again, this one thing alone in my opinion will have a significant impact on high value homes. By my calculations, a $400K loan gets $105K of tax relief (over the term of the loan) from this tax break. If this is removed, it will remove the motivation for many to purchase, hence less demand…
Aggregate the impacts of both of these policy changes, and this is no laughing matter for someone looking to purchase now!
