Mortgage Interest Deduction - St Louis Real Estate News

Real Estate Agents Are In The Goldilocks Zone – What Does This Mean For Their Future?

By Dennis Norman, on October 30th, 2018

Will technology send real estate agents into near extinction like it did with travel agents and may be doing with taxi-cab drivers today? This is a topic of frequent conversation in our industry, especially with dozens of new, well-funded startups, many with new and different business models, all gunning for a piece of the residential real estate industry.

I don’t like Kool-Aid® and don’t drink it..

Before I start, for the naysayers out there that may think since I’ve spent my entire adult life in real estate that, of course, I’m going to come to the conclusion that real estate Continue Reading →

Threat Of Elimination of Mortgage Interest Deduction Not A Concern For St Louis Housing Market

By Dennis Norman, on December 15th, 2016

This morning the National Mortgage News published an article titled “Lenders Fear Congress May Neuter Mortgage Interest Deduction” in which they caution the mortgage interest deduction (MID), referred to as “a pillar of U.S. housing policy” in the article, may be effectively rendered pointless if Congress makes the significant changes to it that they appear ready to consider. Continue Reading →

Finally Others Agree That The Mortgage Interest Deduction Isn’t Critical To The Housing Market

By Dennis Norman, on October 7th, 2016

Over the past 5 years or so I have written a few articles on the topic of the mortgage interest deduction (MID) and how, in spite of what many others in the industry say, I didn’t think it was that critical to the housing industry. All the while, the National Association of REALTORS (NAR) (of which I’m proud to be a member, just happen to disagree on this topic) has staunchly supported the MID and warned that if the deduction went away the housing market and home buyers would suffer. NAR published a fact sheet on the topic stating:

Repealing Continue Reading →

The Truth About The Mortgage Interest Deduction

By Dennis Norman, on January 27th, 2016

Before I begin, I should point out that what I’m about to tell you runs contrary to what the National Association of REALTORS® (NAR), the largest trade association in the country and one I belong to and support, will tell you. The NAR position on the mortgage interest deduction (MID) is, quoting from their website, “the mortgage interest deduction (MID) is a remarkably effective tool that facilitates homeownership.” Continue Reading →

Study Shows Mortgage Interest Deduction Primarily Helps Higher Income Homeowners

By Dennis Norman, on August 26th, 2014

The Mortgage Interest Deduction (MID) is often a topic of much debate often around whether or not it truly helps promote home ownership or is just a another tax break for higher income tax payers. The interesting thing is, the best I can tell, when the deduction for interest was first established it actually had nothing to do with promoting home ownership but instead was intended to benefit proprietors and small business owners. Few realize that the deductibility of interest goes back to 1913 when Congress ratified the Sixteenth Amendment to the constitution which gave the government the right to Continue Reading →

The Mortgage Interest Deduction…Truth vs Fiction

By Dennis Norman, on July 26th, 2013

The truth on the Mortgage Interest Deduction

Currently, lawmakers in Washington D.C., while looking for ways to “close loopholes” and cut spending, are looking hard at something once considered “untouchable”, the mortgage interest deduction (MID). While there is probably little chance of totally eliminating the ability for homeowners to deduct the mortgage interest they paid on their homes, there is a possibility the deduction could be altered significantly or capped, and, perhaps, even phased out over time.

Like most current events, there are stories out there with varying degrees of accuracy about the benefit of the mortgage interest deduction Continue Reading →

Seventy-Five Percent of Americans Associate Owning a home with the American Dream

By Dennis Norman, on February 4th, 2013

A survey conducted by Prudential Real Estate revealed that 75 percent of Americans associate owning a home with the “American Dream” and 96 percent feel home ownership is important and 77 percent of the 25-34 year olds feel home ownership is VERY important. The top reasons given for wanting to own a home include to control their living space, safety and for the investment aspect of it. Interestingly, tax benefits, such as the mortgage interest deduction that REALTORS® have fought to preserve for years, finished a distant 6th on the list of reasons. Continue Reading →

Forecasters say home price increases to be at "pre-bubble" levels next year; no impact by change in MID

By Dennis Norman, on December 27th, 2012

A panel of 105 professional economic forecasters from all around the country expect home prices to increase 3.1 percent in 2013, according to the December 2012 Zillow Home Price Expectations Survey. Forecasters are more optimistic about home prices than they were just three months earlier when they predicted 2013 home prices would only increase by 2.4 percent. Continue Reading →

Homebuyers expect prices to rise and are concerned about lack of homes for sale

By Dennis Norman, on December 18th, 2012

In a vote of confidence for an improving real estate market, seventy-one percent of homebuyers surveyed by Redfin said they are expecting house prices to increase during the coming year in their neighborhood. Additionally, the survey showed that over half (59 percent) of homebuyers are concerned about the lack of inventory of homes for sale. Here in St. Louis, as the table below shows, we have over 25 zip codes that have a 3 month, or less, supply of homes for sale which is making it more of a challenge for home buyers to find a home they like and supports rising home prices so, if you are one of those home buyers waiting for the “right time to buy”, I wouldn’t wait any longer if I were you. Continue Reading →

Cap on Mortgage Interest Deduction Expected Soon

By Dennis Norman, on November 12th, 2012

Charlie Cook, of the Cook Report, a well-known and respected political commentator, cautioned REALTORS at their annual national convention to be prepared for changes to the mortgage interest deduction. According to an article in REALTOR magazine, Cook said he did not expect the mortgage interest deduction (MID) to specifically come under attack but that, as Congress looks at cuts to address the deficit, the MID “unlikely to escape unscathed. Cook went on to say that he felt the change would most likely be in the form of a cap, whether it be a dollar amount or a percent allowed for itemized deductions, but one way or another, it was going to change Continue Reading →

REALTORS tell President Obama his budget proposal will harm housing and homeowners

By Dennis Norman, on February 13th, 2012

Today, Moe Veissi, President of the National Association of REALTORS, issued the following statement in response to President Obama’s budget proposal: “As the leading advocate for housing and homeownership, NAR is strongly opposed to elements of President Obama’s budget proposal that would limit itemized deductions, including the mortgage interest deduction, for thousands of families.” Continue Reading →

Does the Mortgage Interest Deduction Help The Real Estate Market?

By Dennis Norman, on August 15th, 2011

Last week, The Washington Post published an article by Kenneth Harney which said “if you take mortgage interest tax deductions, the next 100 days could have significant financial implications for you, thanks to Congress’s new federal debt ceiling plan……the compromise legislation created an unusual mechanism — an evenly split, 12-member bipartisan supercommittee — that could call for major cutbacks on real estate write-offs by Thanksgiving.”

The question is, would doing away with the mortgage interest deduction put the final nail in the coffin for the housing industry? Read on to hear two opposing opinions on the topic.

Continue Reading →

Has The Rate of Home Ownership Dropped to an All-Time Low?

By Dennis Norman, on December 31st, 2010

As 2010 quickly comes to an end I sat here early this morning pondering the real estate market and reading reports on the housing industry. One thing that caught my attention was an article titled “The Mortgage Interest Deduction and Negative Equity” by Ted Gayer, the co-director of economic studies at the Brookings Institute (and occasional contributor to this blog). Ted’s article made some interesting points related to the mortgage interest deduction, negative equity and home-ownership rates in the U.S.

In his article Ted states “It seems semantically incorrect to call someone who owes more on an asset than it’s Continue Reading →

Pending home sales increase over 10 percent in October; Mortgage Interest Deduction vital to Recovery

By Dennis Norman, on December 2nd, 2010

Dennis Norman

The National Association of REALTORS Pending Home Sales Index for October shows an increase of 10.4 percent in the index from the month before (seasonally adjusted), and a 20.5 percent decrease from a year ago.

Continue Reading →

Mortgage Bankers Cautions Against Cutting Back Mortgage Interest Deduction

By Dennis Norman, on November 15th, 2010

Last week the co-chairs of the National Commission on Fiscal Responsibility and Reform (the group that is supposed to figure out how to rescue our country out of the financial quicksand it’s in) issued a draft proposal of a plan the committee says “will make America better off tomorrow than it is today”.

In addition to such enlightening statements such as “America cannot be great if we go broke” the report outlines a plan that makes five basic recommendations:

Continue Reading →

Tax benefits of home ownership

By Dennis Norman, on September 15th, 2010

Dennis Norman

While much of the talk (including mine) about the real estate market is somewhat negative, there are some positive things to talk about; home prices have fallen back to levels they were at 7 years ago or more and home mortgage interest rates have hit the lowest levels in decades making a home more affordable than ever. This is a great opportunity for someone to buy a home, particularly if a first-time buyer that doesn’t have to deal with selling a home in the current market. In addition, provided Congress doesn’t take them away, there are Continue Reading →

And now for the other side of the coin on the home-buyer tax credit

By Ted Gayer, on November 11th, 2009

Publishers note: If you have been reading our blog for a while you are probably aware we have been supporters and advocates of the home-buyer tax credit as well as the extension and expansion of the credit, which happened last week. We realize however, there are people that do not support the credits for a variety of reasons. I came across the article below which was written prior to passage of the extension of the credit by Ted Gayer. I think this is a well written piece and does present the “other side of the coin”…Ted agreed to allow us Continue Reading →