Mortgage Interest Deduction, regressive and another perk for the wealthy.

The home mortgage interest deduction may not be the so important to home sales as previously thought.

Bruce Bartlett: The sacrosanct mortgage-interest deduction. “[T]here is surprisingly little hard evidence that the mortgage interest deduction has encouraged home ownership. The Harvard economists Edward L. Glaeser and Jesse M. Shapiro have found that it has only a trivial impact. A major reason is that the deduction has long been capitalized into the prices of homes. That is, home prices are higher than they would be without the deduction. Thus to the extent that the deduction encourages home ownership, it is exactly offset by the extent to which high prices discourage home ownership.” Bruce Bartlett in The New York Times.

If you're as surprised as I am, Ezra Klein explains with the help of a great panel on last nights All In with Chris Hayes:

Wisconsin Realtors Association's Big Misstep, Endorses Walker.

Disclosure: I was once a Realtor. I've been waiting out the bad real estate market for some time, before stepping back in.

The Wisconsin Realtor's Association has just come out with their endorsement of Scott Walker.

Even before there is a Democratic opponent? What a horrible management decision, one that may produce a backlash by Democratic home buyers and sellers.

But before you decide to boycott the WRA, consider a group of Realtors who have banded together to be an alternative to the rabid right wingers in the association.

Wisconsin Real Estate Professionals in Support of a Progressive Environment. WI RISPE: We are a group of Realtors passionate about supporting schools, the environment, community and the very people that make Wisconsin strong. The strength of a community is tantamount to a sustainable and prosperous real estate market. If you are a Realtor in Wisconsin who shares these views please join us. If you are not a Realtor but support these views then please join us…

Having said that, I've been railing against the Wisconsin Realtors Association for years for its partisan politics and close ties to the Republican Party. As a real estate practitioner, the worst thing I could do is poison the trust and advocacy I have as agent, with an association to one of the political parties.

Agents represent the interest of the consumer, whether they're a buyer or seller, and would prefer to be a neutral party. Believe me. From Channel3000:



Check out this scathing report tying the realtor's with Scott Walker and the John Doe Investigation.

Walker Creates Buyer Uncertainty, Slows Real Estate Sales with Wage Cuts.

The now struggling mortgage market was once the only thing that held our economy together. Restoring home sales by creating jobs was a no brainer. Was it the Walker administrations ultimate goal? No. The real plan involves ideological purity; Small government via a private for profit takeover of our state. This has created uncertainty for home buyers, and has many area Realtors up in arms. 

Wisbusiness: Citing lost clients and recent deals that have fallen through, some Wisconsin real estate professionals say Gov. Scott Walker's budget repair bill will hinder the recovery of their struggling industry.  

The pay cuts and potential job losses faced by state, local government and school workers are sure to dampen house-hunting and loan approvals for a group long considered solid prospects by mortgage lenders, said JoAnn Kane of Stark Company Realtors in Madison. She was among dozens of real estate professionals who marched around the Capitol Saturday in protest of Walker's actions. It was their second protest there within a month. Some realtors want the Wisconsin Realtors Association, which strongly supported Walker's campaign, to rescind its support for him.  

A newly created Facebook page, Realtors in Support of Public Employees, has topped 580 members, who've been trading stories of skittish buyers and angry clients who link the state's real estate industry with Walker. At least two other similar Facebook groups have formed. 

William Malkasian, WRA president said, "I don't think there's any question that the uncertainty, the fear, the loss of potential employment could have an impact on a selective market, no different than the elimination of the GM plant in Janesville, the elimination of Consolidated Paper in Wisconsin Rapids or the elimination of the AMC plant in Kenosha." 

But, Malkasian doesn’t care. He's always supported big business over consumer wages and employment, an odd preference considering his business needs a healthy middle classe home buyer. Having been a Realtor myself, I can tell you from his past behavior, Malkasian should have been ousted out long ago. He’s a big money fat cat. But the one big problem for Realtors who aren't happy with the elite WRA autocrats...

They can't quit the WRA, because membership is the only way to access the Multiple Listing Service, a basic tool of doing business … It also gives agents use of the trademarked "Realtor" designation. But members can opt out of the organization's $35 annual political action fee. 

There are a few in the business that can’t help make themselves look like...well, you decide:

Not all real estate professionals are pessimistic about losing sales. Ken Olander, a real estate agent with Century 21 in Janesville, says state budget cuts can't do much more to hurt the market in his area, where thousands of private sector jobs have vanished. "Home prices are already so distressed," he said. 

Gee, how lucky can we get?