By John Lefferdink
California real estate is finally on the mend, with home sales improving and foreclosure rates dwindling as we approach the end of the summer. However, as noted in a recent report for
, local and national high-end markets are still taking a hit. In contrast to consistently rising median home prices,
are seeing considerable shifts in value. While this may not be ideal for prospective sellers in the luxury market, it does have the advantage of spurring sales activity – and motivating move-up buyers to seize great deals before its too late.
CNBC reports that home values for properties priced over $1 million have dropped by 20% over the course of this year, marking a new low for the previously sheltered luxury market. In the past, many sellers resisted the downward trend in home prices and opted to “wait out” the market in the hopes of a return to pre-recession values. But these days, instead of fighting back against falling prices, it seems that many luxury homeowners are choosing to accept the reality of today’s market – a move that has helped to buoy sales as buyers rush to snap up high-end homes at unprecedented prices.
As RealtyTrac vice president Daren Blumquist puts is, luxury sellers are “pricing to get these properties sold” – partially in response to the tone of the market and also in anticipation of fiscal uncertainty during an election year. Potential tax changes in the wake of the 2012 election could signal an end to the Bush-era tax cuts, and a subsequent jump in capital gains rates from 15% to over 20%. Such a change could result in millions of dollars in taxes for anyone selling a high-end luxury home – thus providing even greater incentive to get the job done as soon as possible.
Choose the best agent for successful home sales
Here in San Diego’s North County coastal communities, prospective homebuyers are on the hunt for great value on high-end ranch and beachfront properties. At
with Prudential California Realty, we offer unparalleled experience and local expertise to help you sell your home at the best possible price. To learn more about selling
in today’s market, or to schedule a consultation with one of our talented agents, contact us today: call (858) 756-8098 or visit us online at