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

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
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”
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
Here are the week’s top luxury sales
Steven Mnuchin and 740 Park Avenue (Getty, Google Maps)
Steven Mnuchin’s $26M home finally finds a buyer
Steven Mnuchin’s $26M home finally finds a buyer
The Penthouse at 60 Broadway in Williamsburg. (Compass)
Brooklyn sees 41 luxury deals inked last week
Brooklyn sees 41 luxury deals inked last week
FiDi condo supply is through the roof as workers delay office return. (Getty)
FiDi condo glut is through the roof
FiDi condo glut is through the roof
168 Plymouth Street (Alloy)
Brooklyn nets $125M in signed luxury contracts
Brooklyn nets $125M in signed luxury contracts
A rendering of One Boerum Place with Avery Hall Investments' Avi Fisher (top) and Brian Ezra (SLCE Architects, Avery Hall Investments)
Shifting gears: Brooklyn condo tower to debut as rental
Shifting gears: Brooklyn condo tower to debut as rental
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...