RealtyTrac is reporting that prices for homes listed at $1million or more have fallen 20% this year. That is in contrast to the broader housing market where prices have stabilized. According to an article on the USA Today’s website, “Wealthy Home Sellers Capitulate, High End Prices Drop,” one of the reasons that home prices are now falling at the high end is that sellers may be motivated to do a deal this year in anticipation of possible tax changes in 2013. As a reminder, if the Bush tax cuts expire, capital gains rates could rise from 15% to more than 20%.
Merrill Lynch Morning Market Tidbits August 7, 2012
