eliminating mortgage deduction could help with the prices, but overall, probably wouldn't affect how much each people end up effectively paying. I could pay 10K

eliminating mortgage deduction could help with the prices, but overall, probably wouldn't affect how much each people end up effectively paying. I could pay 10K before the deduction, and effectively pay, say 8K, out of pocket. Remove deduction, i still pay 8K. Effectively nothing changes. Also, in the bay area, plenty of houses used to go for cash (to chinese). No amount of mortgage interest deduction cut could help with that. The demand & supply problem is somewhat due to prop 13, but still not entirely.