The survey examined three scenarios: Reducing the maximum MID-eligible mortgage amount to $500,000 and eliminating the allowance for second homes; capping all itemized deductions, including the MID, at $25,000 per year; and eliminating the MID over a multi-year period.There was only one instance in which a majority of respondents indicated prices would not be negatively affected – 55 percent of respondents said the first scenario outlined above would have little to no near-term impact on overall home prices. Eliminating the MID entirely over a period of several years was expected to have the biggest negative impact on high-end home prices over the long-term, with 70 percent of respondents saying they expected such prices to fall moderately or significantly under such a scenario.
Economists Expect 2012 Housing Momentum To Carry Into 2013
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