It Remains a Strong Seller’s Market…
58 homes closed in August of 2021 tied with October of 2020 for the most Washington Park sales in my recorded history. That number is pretty unsustainable so it is not a surprise this month to see a 38% drop in closings from August to September. Also, if we had a record number of sales in October of 2020 that means we likely had a record number of pending sales in September of 2020. Therefore, we also see a 44% year over year drop in the number of homes that are pending. One might think there is cause for alarm until they look at the inventory and see that there are 54% fewer homes available to buy than there were a year ago. It remains a strong seller’s market.
I had a couple of calls last month about my reference to Capital Gains Tax. The current law is that when the profit on a home exceeds $500,000 for a married couple or $250,000 for a single person, any additional profit is subject to State and Federal Capital Gains Tax. Most of us long term Washington Park residents never dreamed of making those kinds of profits when we paid $50,000 or even $200,000 for our houses. Now we are there. If you feel that you might be in this situation, you should discuss your options with your tax advisor. If we can help you or someone you know, please don’t hesitate to get in touch.
