Fiscal Cliff Impact on Luxury Home Sales
On a national level, luxury real estate sales surged in 2012. The number of lavish style homes on the market in Jefferson and Berkeley counties, West Virginia hit a four-year high in the first nine months of 2012. Under the new fiscal cliff deal, households earning upwards of $450,000 will pay higher income tax and be subject to an increase in capital gains tax as well. This has real estate agents asking…with more money owed to Uncle Sam, how will this affect luxury housing in Jefferson County? To begin with, it could mean less big-ticket sales for Jefferson and Berkeley county real estate. But, many experts believe this trend will not continue in the long run. Some actually speculate that higher taxes may contribute to price appreciation. A real estate agent, who works with high-end clients on property investments, predicts that the housing market in Berkeley County is going to thrive and improve. 2012 welcomed a slew of record-breaking home sales as the world’s richest clients snapped up luxury homes and mansions in major US cities. Pouring money into real estate may sound like a risky venture to most Americans, but to a growing number of foreigners, the investment has never seemed smarter. Condos in the Charles Town, West Virginia area have been appealing to rich foreign buyers, but posh co-ops (which typically sell only to United States citizens) have garnered huge sales as well. No matter the city, the one factor that has contributed the most to outrageous sales prices is location. Homebuyers have been willing to pay top dollar for coveted addresses, stellar views and security-reinforced exclusivity in Jefferson and Berkeley counties. Even with the Fiscal Cliff deal initiating some changes for the wealthy, real estate agents say luxury real estate demand is still strong in Martinsburg, West Virginia thanks to America’s perceived safe haven status. Some investors believe that they can earn higher returns by purchasing US real estate and reselling it in the future for a profit. All in all, with the Fiscal Cliff Agreement finally put into legislation, 2013 promises to be an interesting year for both home buyers and sellers.
If you are ready to buy or sell real estate in Jefferson or Berkeley County, please contact us today at 304-725-1145. Linda Kilroy’s Team at ERA Liberty Realty is always here to answer your questions and help you with the sale of your home or the purchase of your dreams