Housing Multiple Choice

What do local real estate insiders think is the biggest threat to housing prices prospectively?

A.  The winding down of Fannie Mae and Freddie Mac.
B.  A spike in mortgage rates.
C.  Phasing out the mortgage interest deduction.
D.  Imposing a tax on real estate commissions.

*Answer:  C

The above observation is anecdotal rather than scientific.

However, to paraphrase an old Bill Maher movie title, “But I don’t think I’m wrong.”

In particular, the worry is that the second home market would bear the brunt of a phase-out on deducting mortgage interest.

*Apparently, all of the above are now being considered by policymakers.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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