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