Luxury sellers who rushed to avoid fiscal cliff may have been too hasty, experts say

TRD New York /
Mar.March 07, 2013 08:30 AM

Manhattan home owners who scrambled to unload high-end properties just before the nation went over the fiscal cliff a few months ago probably lost money because the madcap rush pushed prices down, the Wall Street journal reported.

December set a record for luxury sales, more than 60 percent above the highs during the real estate boom, new data reviewed by the Journal shows. In Manhattan, 156 properties each priced at $4 million and up changed hands – many just days before the federal government increased the capital-gains tax rates.  

Lisa Simonsen, a broker at Douglas Elliman, sold her apartment at East 72nd Street for $1.25 million, though she had paid nearly $1.6 million for it.

“I am not sure I gave myself the right advice,” she told the Journal, and added that the market was now “on fire.” Other experts agreed that prices are rising.

New York real estate players — along with their accountants — are watching closely to see how the deal that Congress and President Obama struck on fiscal cliff will affect the residential and commercial markets in the city, The Real Deal has previously reported.

“The impulse to minimize taxes is as strong as it’s ever been,” Robert Willens, a tax policy expert told the Journal.

With the Manhattan market now “strong and getting stronger,” economist Gregory Heym of Brown Harris Stevens and Halstead predicted last year’s big sell-off will have only a short-term effect on sales volume in 2013. [WSJ] —Hiten Samtani


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

Here are the week’s top luxury sales

Here are the week’s top luxury sales

56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

Gary Barnett

Quantifying the rise and fall of NYC’s condo market

Vincent Viola and 12 East 69th Street (Credit: Getty Images)

Vincent Viola’s Upper East Side townhouse gets $9M price cut

136 Grand Street, #3WR

Buyer nabs $8.8M condo with mirrored room, stripper pole

Vornado Realty Trust’s Steve Roth and 220 Central Park South (Credit: Getty Images, Google Maps, iStock)

Vornado sells another $55M condo at 220 Central Park South

arrow_forward_ios
Loading...