Coldwell Banker Bain presents the Real Estate Minute, a video delivering crucial information to Western Washington home buyers and sellers looking to make informed real estate decisions. Watch the latest edition of the Real Estate Minute below.
Much of today’s economic news centers on the Government’s effort to reduce the federal deficit, create jobs and strengthen the U.S. economy. As both the White House and Congress actively consider what specific steps are needed to accomplish these goals, there are a number of real estate related proposals in the mix. This edition of the Real Estate Minute spotlights these, in an effort to educate and motivate Pacific Northwest homeowners and home buyers, who have a substantial stake in these important decisions and their eventual outcomes.
Some housing decisions have already been made on Capitol Hill, and most real estate professionals will tell you they have not had a positive effect. One recent example is a substantial reduction in the maximum loan amounts that the government-backed Federal Housing Administration offers homebuyers. This change has the effect of reducing the number of buyers in certain market segments by requiring much higher down payments and somewhat higher monthly payments. Fewer buyers can mean falling home prices, so this move has been seen by many as potentially harmful to the housing recovery.
Now the talk is about substantially reducing, or altogether eliminating, the long-standing tax benefit of home ownership. Known as the “Mortgage Interest Deduction”, this tax advantage was established to incentivize middle class Americans towards homeownership and to stimulate economic growth-- and it’s done both. Changing the mortgage interest deduction and discouraging even a relatively small number of homebuyers would likely deal another blow to the housing recovery, and place more downward pressure on home values.
About 65% of Americans – and of those residing in the Northwest – still own their homes, and all have a running interest in the housing recovery. However, many of the most recent decisions, discussions and actions on Capitol Hill have served to make things tougher on American homeowners. In a housing market struggling to find stability, we at the Real Estate Minute don’t believe it’s wise for elected officials to impose any changes that harm any segment of the market. So we invite you to contact your members of Congress, and let them know you support the local and national housing economies and their all-important recovery.
Your CBBain broker has detailed knowledge of the obligations and benefits of homeownership, and is always available to help you decide if they’re right for you. So contact them today, and without obligation.
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