Preservation of Homeownership Tax Policies

Next week I'll be doing my monthly Albuquerque market report, but I wanted to speak about a broader, national topic today. Owning a home is still the American dream, and we're definitely seeing a renewed sense of optimism. Offering more evidence of a swing toward homeownership as the housing market continues to recover, a recent survey states that there has been a dramatic increase in the number who now say that they intend to buy in the near future. 49% simply want the chance to call themselves homeowners, 44% view owning a home as good financial investment, and 36% need more space for their family and/or children.

What can you tell us about the comprehensive tax reform?

Currently, you are able to take an income tax deduction for the amount of interest you have paid on your mortgage. The mortgage interest deduction helps many families become homeowners, and it is vital to the health and stability of housing markets. 65% of families who claim the deduction earn less than $100,000 per year, and as a percentage of income, the biggest beneficiaries are younger middle-class families.

What is the stance of the National Association of Realtors and yourself?

The National Association of Realtors' President Gary Thomas recently testified before the U.S. House Ways and Means Committee concerning federal tax provisions that affect residential real estate. Thomas said that homeownership has had long-standing support in the country because of its many benefits to individuals and families, communities and to the nation's economy. Realtors know that homeownership is an investment in your future and for many people, owning a home helps them gain a financial foothold and a feeling of security, especially once you own your home free and clear.

And this tax deduction helps improve the overall real estate market, correct?

Since we're in the midst of a fragile recovery, additional housing taxes would crush the real estate market just as it is poised to help lift us out of the economic doldrums. Our goal is to see that the tax code will continue to reflect the fundamental American value that homeownership helps build financial stability. Not only is this the right policy for housing, it's also the best for homeowners, for communities, and for the economy.