Larry Flick, Prudential Fox & Roach Chairman and CEO, wanted to offer the local perspective on President Obama's mortgage interest deduction that is part of the proposed national budget.
----------------------------
"The steep decline in the housing markets across the country has contributed significantly to the failure of our credit markets and the recession. Our economy will not recover until the housing market begins to show signs of stabilization and improvement. That is why President Obama’s proposed reduction in the amount of itemized deductions is a bad idea. The mortgage interest tax deduction is the single largest itemized item taken by most Americans. A reduction in allowable itemized deductions will further harm residential real estate values and demand for housing.
"On the surface, reducing the amount of allowable tax itemizations may seem to affect only those with higher incomes and high-end homes. But if the high end of the market is adversely affected, it will set off a chain reaction that will permeate the entire real estate market and cause housing values in all price ranges to decline further.
"I support the President’s stimulus package and understand the need to reduce the overall deficit, but any measures adversely affecting housing should not be taken at this critical time."
----------------------------
For the national perspective, read the statement from the National Association of Realtors.
No comments:
Post a Comment