Luxury Home Sales Soar – Tax Policy Stimulates Market?

Tax policy can have big effects. Like the recent stimulation of the national luxury home market by sellers looking to reduce their liability before the ‘fiscal cliff’ arrived.

According to this article in CNN Money,  “Sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.”

Reading further we get some perspective:

“Looking ahead, all those rushed deals could mean a slight slump in high-end sales early in 2013, said White. Not only will buyers be in shorter supply but the inventory of luxury homes has dropped precipitously.”

In the prestigious local city of Paradise Valley, however, there was no major uptick in sales (see chart) although as of this month the annual appreciation has been 7.9% . (charts and data from the Cromford Report- Link here)

The overall Phoenix market (all price ranges) ranked an impressive 3rd in the nation for appreciation – per Trulia –
The 10 American Housing Markets That Made Tremendous Turnarounds In 2012

Read more:

Paradise Valley Appreciation 2012

Paradise Valley Data shows no uptick for December

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About Mike Garland

In this age of software, data bases and cloud technology, residential real estate provides an anchor to physical reality. At least for now, there is no virtual reality where people can share a meal, a swim in the pool or laugh in the living room with a view of Camelback Mountain the way they can in a luxury home. I enjoy helping people find and sell homes in the Phoenix Valley. With my team we specialize in residential real estate in the Biltmore area, Paradise Valley and the West Valley. I also head up the Toma Partners relocation group.
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One Response to Luxury Home Sales Soar – Tax Policy Stimulates Market?

  1. This article is very interesting because here in the reno/sparks area we are not seeing that trend our homes in the middle price range are the ones seling like crazy and the luxury homes are on the market for a long time and are even expiring. Great post!

    -Daytona

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